Making Tax Digital (MTD) for Income Tax is bringing significant changes to the way many sole traders and landlords manage and report their tax affairs to HMRC.
It might sound like a big change, but with the right systems and support in place, there’s no need to worry. We’re here to help make the transition as simple and straightforward as possible.
From 6 April 2026, MTD applies to individuals with qualifying income from self-employment and/or property of more than £50,000.
The rules will then extend to those with qualifying income over £30,000 from April 2027, and over £20,000 from April 2028.
Instead of keeping your records and submitting information only through an annual Self Assessment tax return, those affected by MTD will need to:
The four quarterly updates don’t replace your annual tax return. You’ll still need to submit your annual return, including any necessary adjustments, reliefs and other sources of income.
But don’t worry — we can take care of this for you too! We’ll make sure your annual return is prepared and submitted correctly, giving you one less thing to worry about.
As your accountants, we can support you throughout the process. We can:
Our aim is to make MTD as simple and stress free as possible, while ensuring you remain compliant with HMRC requirements.
Will your annual earnings be over £30,000 from April 2027? If so, you may be affected by MTD for Income Tax. Don’t leave it until the last minute — get in touch with us today to find out how the changes could affect you and start getting prepared early.
Author, Eve Jephson - Outsourced Finance Manager