Making Tax Digital for Income Tax

I haven’t posted much about Making Tax Digital (MTD) for Income Tax lately. I mainly work with Limited Companies, and the clients it impacts already have all the information from me.

It also feels like there is a lot of information floating around out there. Or maybe I am just seeing it because I am an accountant and because of who I follow.

So if you are self-employed, have a little read to see what you should be doing.

MTD for income tax is applicable to you from April 2026 if you are self-employed, a landlord, or both, and you have income over £50,000 in a tax year from one or both income streams.

Do not think you are completely off the hook if you earn less. If your income is over £30,000, you will be pulled in from April 2027. If it is over £20,000, your start date is April 2028.

What do you actually need to do?

Keep your records digitally. This means using accounting software, and you want to make sure it is MTD compliant.

Ensure your records are accurate and you are only claiming what you should.

Submit your figures to HMRC every quarter, which means four times a year.

Submit your final year end return via self-assessment.

If all this fills you with dread, what can you do?

Speak to a bookkeeper or accountant. There are lots of professionals who are taking on self-employed and landlord clients and want to help. I only take on Limited Company work, but if you want me to recommend someone to you, just let me know.

Rachael