Making Tax Digital (MTD) for Income Tax changes how many sole traders and landlords keep records and report to HMRC. Instead of one annual return, you keep digital records and send quarterly updates using compatible software.
Who does it apply to?
MTD for Income Tax is being phased in based on your combined gross income from self-employment and property:
- Over £50,000 from April 2026
- Over £30,000 from April 2027
- Over £20,000 from April 2028
What changes in practice
- Keep your business and property records digitally
- Send a summary update to HMRC every quarter
- Submit a final declaration after the end of the tax year
Getting ready
The easiest way to prepare is to start using bookkeeping software now, so the habit is in place before your start date. We can recommend software, set it up for you, and handle the quarterly submissions so you can focus on running your business.
Not sure whether MTD applies to you? Call us on 01582 720206 and we'll check.