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Making Tax Digital for Income Tax
The government confirmed in the 2025 Spring Statement that it will roll out Making Tax Digital (MTD) for income tax to a broader range of small businesses starting in April 2026.
What is ‘Making Tax Digital’?
The government’s ground breaking MTD initiative is set to transform the UK’s tax system by shifting taxpayers to a fully digital platform. Aimed at modernising and streamlining tax processes, MTD will eliminate traditional paper-based tax returns, replacing them with digital tax accounts. This transition is estimated to impact around 10 million individuals and five million small businesses throughout the UK.
MTD for Income Tax
MTD for Income Tax will see the transition from an annual Self-Assessment tax return to a more frequent reporting system. If MTD applies to your business, you must submit quarterly updates on your income and expenses throughout the year. Additionally, at the end of the tax year, individuals must submit a final declaration, confirming total income and tax owed.
Will MTD affect me?
Starting April 2026, self-employed individuals and landlords with an annual turnover of £50,000 or more, must comply with MTD. The requirement will expand to those earning over £30,000 in April 2027 and further extend to individuals with incomes exceeding £20,000 from April 2028.
Download our Guide on MTD for Income Tax
To help individuals prepare for the rollout of Making Tax Digital (MTD), we have created a comprehensive summary guide. This handy resource provides taxpayers with a clear overview of the upcoming changes, important deadlines, and what they need to do to ensure compliance.
Our guide covers key points such as:
- How MTD is reshaping income tax ✅
- When MTD will be implemented and who it affects ✅
- HMRCs Personal Tax Account ✅
- Simple Assessment ✅
- What you need to do to comply with MTD ✅
- MTD reporting timeline ✅
Accountancy Services
If you’re self-employed, a landlord, or a business owner, you need to stay on top of your accounts, especially with Making Tax Digital just around the corner. Our expert accountants are here to help support you and your business, helping to ensure on-going compliance and keeping you on track with your reporting requirements.
Got some questions about how MTD will affect you? Get in touch with our accountancy team today.
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