Get ready for Making Tax Digital for Income Tax
MTD is coming for landlords and self-employed individuals. We’re here to help you stay compliant, make the switch seamlessly, and benefit from going digital.
DEADLINE
What is MTD IT – and when do you need to act?
MTD IT is an HMRC initiative that will change the way individuals report and manage their tax affairs.
From 6 April 2026, self-employed individuals and landlords with over £50,000 gross income will need to:
• Keep digital records of income and expenditure;
• Use MTD-compatible software;
• Submit quarterly updates to HMRC;
• Complete a final end-of-year submission.
From April 2027, this will extend to those with gross income over £30,000, and will extend again to £20,000 in April 2028.
If this applies to you, it’s essential to start preparing now to avoid disruption later.
Potential benefits to you
Why MTD IT could actually make life easier
While MTD may give some extra work at the beginning, it should also bring advantages:
• Time-saving automation: MTD-compatible software can automate tasks like bank statement retrieval, and expense categorisation.
• Financial clarity: Regular reporting helps you understand your income trends and manage cash flow more effectively.
• Improved compliance: Staying on top of your records makes it easier to remain compliant and avoid penalties.
• Real-time tax visibility: Regular updates mean fewer surprises when it comes to your tax bill.
• Better record-keeping: Digital tools reduce the risk of errors and lost information.
Our Support
How we can help you every
step of the way
As your accountants, we’re here to take the stress out of the transition. Here’s how we can help:
Assess current position:
We’ll help determine whether and when MTD applies to you.
Recommend software:
We’ll guide you to the right digital tools for your business.
Train & ‘onboard’ you:
Need help using new software? We’ll walk you through it.
Manage submissions:
We can handle quarterly and annual submissions on your behalf, so you never miss a deadline.
Ongoing advice:
As rules evolve, we’ll keep you informed and ready.
You don’t need to figure it all out alone — we’ve got you covered.
Ongoing Guidance
Stay informed as the rules evolve
We’re closely following all developments related to Making Tax Digital for Income Tax. As the deadline approaches and details become clearer, we will:
• Keep you updated via email and social media announcements
• Provide resources and checklists to help you prepare
• Update this page regularly with the latest information
Watch this space and look out for direct communications from us as we guide you through this transition.
Making Tax Digital
FAQs
Who needs to comply with MTD for IT?
From 6 April 2026, self-employed individuals and landlords with gross annual income over £50,000. From 6 April 2027, this will include those earning over £30,000, and from 6 April 2028 it will be £20,000.
What counts as digital record-keeping?
You must use HMRC-approved software to record income and expenses, and to submit your updates.
Can I still use spreadsheets?
Technically yes — but it may not be the best option. While spreadsheets can be used alongside “bridging software” to meet MTD requirements, this approach is often clunky, time-consuming, and prone to errors.
Using full MTD-compatible accounting software is far more efficient, streamlining your records, automating tasks, and giving you a clearer view of your finances — while ensuring full compliance.
How often do I need to report to HMRC?
You’ll need to send updates every quarter, plus a final end-of-year statement.
Will this replace my Self Assessment tax return?
No, MTD will only declare your rental and self employed income. A final return will be required to declare any other income and/or gains and claim reliefs, or confirm there is no further income etc.
What if I don’t comply?
Can you do the updates for me?
Absolutely. We can manage the whole process for you or support you to do it yourself. The difference in our fees between these options can be discussed in advance.
Get In Touch
Have a question? Send us a message
Making Tax Digital
Rules & thresholds
HMRC plans to require self-employed individuals and landlords to begin keeping digital records and using the new digital service from specified dates, depending on their annual gross income (total income before expenses):
|
Total annual self-employed and/or rental income before expenses exceeds |
Starting date |
|
£50,000 |
6 April 2026 |
|
£30,000 |
6 April 2027 |
|
£20,000 |
6 April 2028 |
The key points to know are:
The gross income included in the latest-filed tax return will be used to determine which individuals must comply with MTD and from when
Relevant individuals are required to hold digital records. We have reviewed available software and can recommend the best option for your needs. You may choose another, but this could increase our fees
For individuals who have a joint property, only their share of gross rental income will be used to determine if MTD is required for them
The quarterly updates and year-end summary must be completed for each property
