The countdown to Making Tax Digital for Income Tax – Who is affected first?
With less than a year to go before Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for sole traders and landlords earning over £50,000, it is important to start preparing.
From April 2026, these taxpayers will need to file quarterly updates and a final end-of-year declaration using MTD-compatible software.
Although the latest trial phase has been open since April 2025, uptake remains low.
Just 1,000 individuals and agents have signed up so far, despite HM Revenue & Customs (HMRC) anticipating that 780,000 will need to be on board next year.
A further 970,000 are expected to join in 2027 as thresholds lower to £30,000. In April 2028, this will lower again to £20,000.
How Making Tax Digital alters your reporting obligations
Under MTD for IT, those earning over £50,000 from self-employment or property will be required to:
- Submit updates every quarter (due 7 August, 7 November, 7 February, and 7 May)
- Complete a final declaration after the end of the tax year
- Use software that integrates directly with HMRC’s systems
Non-compliance is not an option
MTD is a legal requirement rolling out in phases.
Those who delay preparing risk disruption, unnecessary stress, and ultimately non-compliance.
HMRC’s stated aim is to improve accuracy and reduce the tax gap.
The quarterly rhythm of reporting will require a new discipline in record-keeping and software use.
Relying on spreadsheets and manual processes simply won’t cut it.
This is a pivotal moment for self-employed individuals and landlords.
The changes are far-reaching but entirely manageable, provided the transition is made in good time, with proper systems in place and a clear understanding of the new obligations.
How we can help you with the Making Tax Digital transition
We are already supporting clients in adapting to MTD requirements by testing compatible software, training staff, and offering guidance to ensure that our clients are compliant and confident in the new reporting environment.
If you earn over £50,000 and have not yet considered how MTD will affect you, now is the time.
Waiting until deadlines are looming will only reduce your options and increase your costs.
Speak with our team today to start preparing on your terms, with expert support.
