Making Tax Digital (MTD) for Income Tax: What You Need to Know
From April 2026, many people will need to enter the new reporting era. Are you ready?
Making Tax Digital (MTD) for income tax is a government initiative that requires sole traders and landlords to:
- Keep digital records.
- Send quarterly reports to HRMC throughout the year.
HMRC’s aim is to improve accuracy, reduce errors and modernise the UK tax system.
| Income Band | Enrolment Deadline |
|---|---|
| Over £50,000 (combined self-employment & rental income) | From April 2026 |
| Over £30,000 | From April 2027 |
| Over £20,000 | From April 2028 |
ℹ️ Note: If you earn income from both self-employment and rental income, the thresholds are combined. For example, £32,000 from self-employment and £18,000 from rental income equals £50,000 – so you will be required to join MTD from April 2028.
✅ Keep digital records of income and expenses
✅ Use MTD compatible software (like Xero, QuickBooks, FreeAgent)
✅ Submit returns digitally to HMRC
✅ File quarterly updates, not just annual returns
• Set up and migrate you to MTD-compliant software
• Provide training or handle everything for you
• Ensure you’re fully compliant and stress-free before your deadline
Reduces Errors
MTD-compliant software minimizes manual data entry, leading to fewer errors in your financial records.
Keeps Records Up-to-Date
Real-time accounting ensures your financial records are always current, providing an accurate view of your business performance.
Saves Time
Real-time accounting automates many tasks, freeing up your time to focus on growing your business.
Helps Forecast Tax Bills
More accurate forecasting of tax bills allows for better financial planning and avoids unexpected tax liabilities.