MTD for Income Tax

HMRC have confirmed that "Making Tax Digital (MTD) for Income Tax" will be introduced from 6th April 2026.

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) for Income Tax is a new way of reporting income and expenses to HMRC if you’re a sole trader or landlord.

You’ll need to:

• use software that works with Making Tax Digital for Income Tax

• keep digital records of your business income and expenses

• send HMRC quarterly updates

• continue to submit a tax return and pay tax due by 31st January the following year

When do I need to comply from?

Making Tax Digital for Income Tax will become mandatory in phases based on your total annual qualifying income from self-employment or property.

• If you have a qualifying income of more than £50,000 in the 2024 to 2025 tax year:

  • You must start using Making Tax Digital for Income Tax by 6th April 2026

  
  

• If you have a qualifying income of more than £30,000 in the 2025 to 2026 tax year:

  • You must start using Making Tax Digital for Income Tax by 6th April 2027

If your total gross income from self-employment and property is less than £30,000, but over £20,000, HMRC have stated that you’ll need to use Making Tax Digital for Income Tax in the future. HMRC will set out the timeline for this at a later date.

HMRC has yet to confirm the date when partnerships will need to start following MTD rules. 

Making Tax Digital for Income Tax will be a significant change for a lot of sole traders and landlords, in the way that they are required to keep their income and expenditure records. However, keeping digital records can have a number of benefits, including being more secure, improved accuracy, better tax planning, and greater insight and financial control.

For more information, please see our MTD page or feel free to Contact Us.

HMRC also have further information available on Making Tax Digital for Income Tax at: https://www.gov.uk/government/collections/making-tax-digital-for-income-tax