Making Tax Digital for Income Tax changes how sole traders and landlords report to HMRC. Instead of one annual return, you keep digital records and send quarterly updates through compatible software, then a final declaration after the year end.
Who it applies to
- From 6 April 2026: qualifying self-employment and property income over £50,000
- From 6 April 2027: over £30,000
- From 6 April 2028: over £20,000
The test uses your gross income before expenses, taken from the tax return for two years earlier.
What to do
- Check whether you are in scope, or ask us to check for you
- Choose MTD-compatible software, or let us keep the records for you
- Move to digital record keeping before your start date
We set up the software and file your quarterly updates through our bookkeeping and Self Assessment services. See also our services for landlords and property investors.