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Making Tax Digital for Income Tax

If you are a sole trader or landlord and your turnover if above £50,000 then from 6 April 2026 you will need to comply with the rules of MTD for Income Tax. 


The threshold for meeting the MTD obligations changes to £30,000 from 6 April 2027 and reduces to £20,000 from 6 April 2028.


As part of MTD for Income Tax you will be required to do the following.

  • Create and store digital records of your self-employment and property income and expenses.
  • Send a quarterly update to HMRC in a digital format.
  • Submit your tax return to HMRC by 31 January the following year.


You only need to create digital records for your self-employment and property income and expenses, while you do not need to create digital records for your other income, you will still need to report income such as pensions, PAYE earnings, savings, a share of profits from a partnership, dividends, etc....

 

We can help you with digital solutions for MTD, from the basic solutions to complete packages. We have years of experience with a variety of software providers like SAGE, Xero and Quickbooks, but there are other software packages that may be better suited to your requirements, so come and speak to us and see how we can support you.