Making Tax Digital for Income Tax (MTDfIT)

Change is coming for many taxpayers as HMRC rollout the next phases of Making Tax Digital for Income Tax (MTDfIT). This is our dedicated MTDfIT area which we will keep updated to support our clients, present and future, throughout the journey.

You will need to be prepared to change but we are committed to supporting you every step of the way to help you the find digital solution for you.

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Starting from April 2026, individuals with a combined turnover from self-employment and property income exceeding £50,000 gross will be required to comply with HMRC’s “Making Tax Digital” (MTD) requirements. This will necessitate the use of commercial software compatible with MTD for Income Tax to maintain self-employment and property records.

Quarterly updates (summaries of the digital records) must be submitted to HMRC (unless you are exempt).

The requirement to comply from 6 April 2026 is based on your turnover for the tax year ending 5 April 2025, with the test applied annually thereafter for registration in subsequent years.

These rules will extend to those with income from self-employment and property income exceeding £30,000 from April 2027, and the threshold will further reduce to £20,000 from April 2028

An overview of the current timeline is below to help you plan for when you and your business need to be ready:

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Making Tax Digital for Income Tax - Understanding the rules and successful implementation

In this webinar, Larking Gowen Partner, Martin Bugg, and Assistant Manager, Matt Wymer, explain everything you need to know about Making Tax Digital for Income Tax (MTDfIT) and how to prepare ahead of the April 2026 rollout.

You will learn:

What Making Tax Digital for Income Tax is and why HMRC is introducing MTDfIT
Who must comply and when, including the £50,000, £30,000 and £20,000 income thresholds
How qualifying income is calculated for self-employment and property income
What quarterly updates involve and how submission deadlines work
How the final declaration replaces the traditional tax return
Common pitfalls, penalties for late submissions, and how to remain compliant

Relevant Insights

Blog

Software for Making Tax Digital for Income Tax

Thursday, 18 December 2025

Partner Martin Bugg outlines the upcoming Making Tax Digital for Income Tax changes, highlighting the need for digital records, quarterly updates, and the right software for compliance.

Blog

Landlords: Don’t get caught out by MTDfIT – What you need to do before April 2026

Tuesday, 11 November 2025

Mel Howard explores what the new digital tax rules mean for landlords, why early preparation is essential, and how to get your property records ready for the 2026 deadline.

Blog

It’s coming: Are you ready for Making Tax Digital for Income Tax (MTDfIT)?

Tuesday, 2 September 2025

Martin Bugg explains what Making Tax Digital for Income Tax means for landlords and sole traders, why it matters, and the practical steps you can take now to prepare for the 2026 deadline.

Blog

What are the benefits of Making Tax Digital?

Friday, 23 May 2025

An overview of the practical benefits of Making Tax Digital for Income Tax, including fewer errors, real-time tax visibility, better organisation, and environmental impact – plus details on penalties and voluntary testing.

Brochure

Making Tax Digital for Income Tax

Change is coming for many taxpayers as HMRC roll out the next phases of Making Tax Digital for Income Tax (MTDfIT).

Blog

Making Tax Digital (MTD)

Friday, 16 August 2024

Chris Bale discusses the latest on the incoming Making Tax Digital regime. He highlights the dates, pitfalls and advantages as well as how we can help.