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Making Tax Digital for Income Tax – Time to prepare

With the deadline for Making Tax Digital for Income Tax (MTD IT) currently set for April 2026, if you are a sole trader or landlord with qualifying income of £50,000 or more, it’s time to prepare!

In addition to your annual tax return; those mandated to comply with MTD IT requirements will need to submit cumulative quarterly updates of their income and expenses to HMRC and maintain digital records of their transactions using HMRC approved software.

Who will be affected by Making Tax Digital for Income Tax

MTD IT is a new way to report income tax for self-employment and property to HMRC. It will be introduced in phases from April 2026. Who will be affected and when will be depend on your qualifying income (your gross income from self-employment and property combined);

• April 2026, if your qualifying income is over £50,000 in the 2024 – 2025 tax year.
• April 2027, if your qualifying income is over £30,000 in the 2025 – 2026 tax year.
• April 2028, if your qualifying income is over £20,000 in the 2026 – 2027 tax year.

With the first deadline less than 12 months away, sole traders and landlords are being encouraged to sign-up early in order to familiarise themselves with MTD compatible software.

At PW John & Co Accountants in Weston-super-Mare we are specialist in Cloud accounting software and we can assist with all aspects of Making Tax Digital for Income Tax to ensure that you are fully compliant. Please contact us for more information.

5 Reasons why you should start using MTD software now