Making Tax Digital for Income Tax
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Making Tax Digital for
Income Tax
MTD for IT is HMRC’s initiative to digitise the way individuals report income tax. Instead of submitting one annual Self-Assessment tax return, affected taxpayers will need to maintain digital records and send quarterly updates to HMRC using MTD-compatible software.
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When will it affect you?
The rollout is happening in stages based on income thresholds:
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April 2026: Income over £50,000
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April 2027: Income over £30,000
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April 2028: Income over £20,000
If your combined income from self-employment or property meets these thresholds, MTD will soon become a regular part of your tax routine.
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What will you need to do?
To comply with MTD for IT, you'll need to:
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Keep digital records of your income and expenses.
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Use MTD-compatible software to maintain those records.
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Submit quarterly updates to HMRC throughout the tax year.
• Submit a final end-of-period statement (EOPS) and a final declaration (replacing the traditional Self-Assessment return).
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How to prepare
Please don’t wait until the deadline approaches.
Here are a few steps you can take now:
Review your current record-keeping. If you still use spreadsheets or paper records, it's time to explore digital options.
Choose MTD-compliant software that suits your needs. Many providers offer features tailored for sole traders and landlords.
LHP know you and your business, so we can provide tailored support for all your Making Tax Digital needs.
