Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000 you need to be prepared for digital record keeping including making quarterly updates and for a new penalty system.
You will need to use MTD for IT if all of the following apply:
You are a sole trader or landlord registered for self-assessment.
You receive income from self-employment, property or both.
When you must start using MTD for IT:
If your qualifying income is over £50,000 in the 2024–2025 tax year:
You must start using MTD for IT from 6 April 2026
If your qualifying income is over £30,000 in the 2025–2026 tax year:
You must start using MTD for IT from 6 April 2027
If your qualifying income is over £20,000 in the 2026–2027 tax year:
The government has confirmed that MTD for IT will apply to sole traders and landlords with income over £20,000 starting in April 2028 but further details are awaited.
You are currently exempt from MTD for IT if:
You meet specific limited conditions that automatically exempt you from the service (e.g., for reasons such as age, disability, or location).
You have applied for an exemption, and it has been approved by HMRC.
Your qualifying income is £20,000 or less in a tax year.
If you do not use MTD for IT, you must continue to report your income and gains in a self-assessment tax return if required.
If your query is not listed above or you would like further information, please feel free to give us a call for some friendly, no-obligation advice. Please note, telephone calls are recorded.