MAKING TAX DIGITAL
for INCOME TAX
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Who
From April 2026, Making Tax Digital for Income Tax (MTD for IT) will apply to sole trade businesses and landlords with a total business and/or property income above £50,000 per year. Sole traders and landlords earning above £30,000 will follow in April 2027.
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When
Under MTD for Income Tax, sole trade businesses and landlords will need to keep and maintain digital records from April 2026 and use HMRC-recognised software to manage, track and send updates to HMRC. The threshold will be extended to those earning above £20,000 from April 2028.
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Why
Making Tax Digital (MTD) is a government initiative to digitise the way businesses manage tax. MTD for VAT is already in place, with all VAT-registered businesses now required to keep digital records and submit their VAT returns using HMRC-recognised software.
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How
Sole Traders and Landlords will be required to send HMRC quarterly updates of their business income and expenditure. A final declaration each year will also need to be made, to include other sources of taxable income such as savings and investment income.
Come and have a chat with us
Whether you currently keep your business or property records in a shoe box, keep the details on a spreadsheet or are already using digital software, you will need to prepare to start sharing your information digitally with HMRC on a quarterly basis.
Come and have a chat with us to choose how best to organise yourself and your records ready for April 2026!