Making Tax Digital – time to prepare!

From April 2026, taxpayers with qualifying trading and property income of £50,000 or more on the 2024-25 tax return will be mandated to join MTD IT. The start date for incomes between £30,000 and £50,000 is April 2027. The Chancellor confirmed in the Spring Statement that MTD IT will be extended to those with income of £20,000 or more from April 2028.

This is a fundamental change to the way sole traders and landlords report their results to HMRC and will eventually apply to almost everyone who receives income from self-employment and/or property.

To comply with the requirements, mandated taxpayers must:

• Use approved software, apps or spreadsheets to record income and expenditure;
• Submit cumulative quarterly updates to HMRC by 7th August, 7th November, 7th February and 7th May each year; and
• Complete a final annual submission of taxable profit for the accounting period at the end of the year. This will replace the current self assessment tax return.

​If you do not currently keep digital accounting records, do not worry, as I will be able to help you with the process. HMRC is not providing its own record-keeping software or platform. I will be able to recommend the right commercial software solutions that meet the MTD IT requirements for you.