Making Tax Digital (MTD) is a government initiative to modernise HMRC’s tax system by making the process of administering tax simpler, more efficient, and easier for taxpayers to get their tax right.
Put simply, MTD involves using compatible software to manage your tax affairs with HMRC.
From 6 April 2026 MTD is being expanded to include income tax for self-employed businesses and landlords with a combined total gross income from the following sources of over £50,000 per annum:
• Income from self-employment
• Income from UK property
• Income from overseas property
From April 2027, MTD for Income Tax will be expanded to those with income from these sources in excess of £30,000. As of April 2028, this threshold will be lowered to £20,000.
Taxpayers must be fully prepared for these changes, as they could face fines or penalties if they do not comply in future.
Below are the key dates for MTD to help you track your journey and ensure you are compliant with the changes ahead.
Latest Update
Self-employed businesses and landlords across the UK face a challenging time ahead, as the Government continues to implement its MTD initiative with the rollout of MTD for Income Tax from April 2026.
The changes required to comply with this new tax system are complex and onerous. Businesses and taxpayers may need to invest in new technology, such as cloud accounting software, and alter their method of recording and reporting accounts and tax information.
We have already helped a wide range of businesses with the initial stages of MTD and can assist you by putting the necessary software, apps and procedures in place.
Please get in touch with your usual contact or contact our MTD Advisory Team at advice@milstedlangdon.co.uk if you would like any further information on the options available to you.
You can find an example of quarterly update submissions and the year-end process here.
Please get in touch with your usual contact or contact our MTD Advisory Team at advice@milstedlangdon.co.uk if you would like any further information on the options available to you.
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