Making Tax Digital for Income Tax is nearly here – Are you ready for what comes next?
Making Tax Digital for Income Tax is nearly here – Are you ready for what comes next?

A big change is coming for anyone earning income through self-employment or rental property.

From April 2026, if your earnings exceed £50,000, you will be required to comply with the Government’s new digital tax rules.

Making Tax Digital for Income Tax (often called MTD for IT) means saying goodbye to annual paper returns.

Instead, affected taxpayers must use HM Revenue & Customs (HMRC) approved digital software to send quarterly summaries of their income and expenses, along with a final declaration at the end of each tax year.

Future phases of Making Tax Digital

MTD is being introduced gradually. After the initial wave in 2026 for those earning above £50,000, the threshold will drop to £30,000 in 2027, and then again to £20,000 in 2028.

If you fall into one of these categories, you need to be aware of when your obligations begin.

What you will need to do

If you are in the scope of MTD, you will have to:

  • Keep digital records of income and expenses
  • Submit quarterly updates to HMRC by 7 August, 7 November, 7 February, and 7 May
  • File a final end-of-year statement using approved software

The importance of Making Tax Digital compliance

This is a complete shift in how you manage your tax reporting.

The aim is to reduce errors and close the tax gap, but the onus is on you to stay compliant.

Continuing with spreadsheets or manual record-keeping will no longer be sufficient. Those who fail to prepare risk penalties, confusion, and unnecessary stress.

Start early, stay in control

Our team is already helping clients upgrade their systems, choose the right software, and get used to the new way of doing things before the rules become mandatory.

The earlier you plan, the smoother your transition will be, and the more confident you will feel in managing your tax responsibilities.

Need support with MTD for Income Tax?

We are here to help you get it right. Speak to us today to put a plan in place and avoid any last-minute panic.