Core Viewpoint - HM Revenue & Customs (HMRC) in the UK is urging sole traders and landlords earning over £50,000 ($68,426) annually to prepare for the Making Tax Digital (MTD) for Income Tax, which will take effect on 6 April 2026, impacting over 860,000 individuals [1]. Group 1: MTD Implementation Details - The MTD for Income Tax will require affected individuals to maintain digital records and submit quarterly updates of income and expenses using recognized software [1]. - Free software options are available that can generate basic summaries for submission, streamlining the tax reporting process [2]. - Taxpayers will still need to file a tax return by 31 January following the tax year, but the software will retain information from quarterly updates, minimizing year-end document searches [2]. Group 2: Transition and Support - Thousands of sole traders and landlords have already participated in MTD for Income Tax, with over 12,000 quarterly updates submitted through a voluntary testing program [3]. - The first tax return under MTD, covering the 2026–27 tax year, will be due by 31 January 2028, while the 2025–26 tax return must be filed in the current format by 31 January 2027 [4]. - To facilitate the transition, HMRC will not impose penalty points for late quarterly updates during the first 12 months for those entering the regime in April 2026 [4].