Making Tax Digital for Income Tax (MTD fIT)

Change is coming for many taxpayers as HMRC rollout the next phases of Making Tax Digital for Income Tax (MTD fIT). This is our dedicated MTD fIT 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:

April 2019

MTD was introduced for all VAT-registered businesses with a taxable turnover of over £85,000 (the previous VAT threshold).

April 2021

Digital links become mandatory for MTD for VAT.

April 2022

All VAT registered businesses, regardless of turnover, must now comply with MTD for VAT rules.

April 2026

Making Tax Digital for Income Tax (MTD fIT) comes into effect for sole traders and landlords earning over £500,000.

April 2027

Making Tax Digital for Income Tax comes into effect for sole traders and landlords earning over £30,000.

April 2028

Making Tax Digital for Income Tax Self Assessment comes into effect for sole traders and landlords earning over £20,000.

Relevant Insights

Blog

Making Tax Digital (MTD)

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.

Blog

Making Tax Digital a little later than planned

Changes have been made to Making Tax Digital which will affect many more people who submit a self assessment tax return. Read our blog to see if you’re affected and when you need to comply.

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

Thousands of farmers may soon find their tax affairs much more complicated in the shift towards Making Tax Digital

Alison Smith discusses the most recent announcement about the transition towards Making Tax Digital (MTD) and the likely additional complications (and extra tax charges) on the horizon for many farming businesses.

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