HMRC have updated their guidance for sole traders, landlords and agents on opting out where income is below the relevant threshold for three consecutive tax years.
On 07 September 2026, HMRC updated their Use Making Tax Digital for Income Tax guidance, specifically the part ‘If your circumstances change’.
This now says that if qualifying income is below the relevant threshold for three consecutive tax years, there is no longer a need to wait until submission of the tax return for the third year to opt out (via the HMRC online services account or Agent Services Account).
For Bookkeepers
A small example change in HMRC’s guidance that can be viewed by sole traders and landlords, therefore, ICB is making members aware.