Making Tax Digital (MTD) for Income Tax changes how many sole traders and landlords report their income to HMRC. Instead of one Self Assessment return a year, you keep digital records and send HMRC a short update every quarter, then confirm your final figures after the tax year ends.
Who has to join, and when
MTD for Income Tax is being introduced in stages, based on your qualifying income from self-employment and property (your turnover before expenses, not your profit):
- From 6 April 2026: qualifying income over £50,000
- From 6 April 2027: qualifying income over £30,000
- From 6 April 2028: qualifying income over £20,000
HMRC looks at the figures on an earlier tax return to decide when you need to start, so it is worth checking where you stand now rather than waiting for a letter.
What changes in practice
- You keep your business and property records in MTD-compatible software
- You send a quarterly update to HMRC, usually by the 7th of the month after each quarter ends
- You submit a final declaration by 31 January after the end of the tax year
- Payment dates for your tax bill do not change
How to get ready
The easiest way to prepare is to move your records into cloud software now, so the quarterly updates become routine. Connect your bank feed, capture receipts on your phone and keep business and personal spending separate.
If you would rather not deal with it yourself, we can set up the software, keep your records up to date and file every quarterly update and final declaration for you on a fixed fee.
Rules and thresholds can change. Always check the latest guidance on GOV.UK or speak to us before acting.