03/06/2026
Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is a new HMRC requirement that will change how sole traders and landlords report their income. Under MTD, affected taxpayers must keep digital records and submit quarterly updates to HMRC using compatible accounting software.
The new rules are being introduced in phases based on your total annual qualifying income (the combined gross income from self-employment and property):
• From April 2026 – income over £50,000 (Based on your 24-25 income)
• From April 2027 – income over £30,000 (Based on your 25-26 income)
• From April 2028 – income over £20,000 (Based on your 26-27 income)
Please note that these thresholds are based on your gross income, not your profit.
If we believe you will be required to join MTD from April 2026, we will already have contacted you to discuss the changes and the steps you need to take.
Accounting software can help simplify your record-keeping by allowing you to:
• Create and send invoices electronically.
• Capture and store receipts digitally.
• Keep your records organised throughout the year.
• Share information with us more efficiently, making the transition to MTD smoother for both you and our team.
We are here to support you through the move to MTD and can help you choose the right software, set up your records, and ensure you remain compliant with HMRC requirements.
If you think you may be affected by these changes, please contact us. We would be happy to discuss your circumstances and help you prepare for MTD.
