Making Tax Digital for Income Tax
Who is eligible?
From April 2026
Sole Traders and Landlords with income of £50,000
From April 2027
Sole Traders and Landlords with income of £30,000
From April 2028
Sole Traders and Landlords with income of £20,000
Please note: Income is your Sales figure and not your Profit (Income minus Expenses)
There is no eligibility for Limited Companies or Partnerships at the present time but watch this space!
What do I need to do?
Making Tax Digital for Income Tax is a way of reporting your Income and Expenses to HMRC via approved software or linking spreadsheets.
You will need to submit a cumulative return as evidence of your Income and Expenses five times a year
Submission Dates for your Diary
Aug 7th for Apr to Jun Income and Expenses
Nov 7th for Apr to Sep Income and Expenses
Feb 7th for Apr to Dec Income and Expenses
May 7th for Apr to Mar Income and Expenses
Final Declaration replacing Self Assessment in January following year end (as usual
DON'T PANIC!
There are options for all current users to get compliant
Option 1— Paper based users
Convert into using Option 2
Option 2— Spreadsheet users
Look into approved spreadsheet linking software such as 123sheets, AbsoluteMTD, AbraTax (which will have additional costs)
Option 3 — Accounting Software users
Make sure you are using approved software such as Quick Books, Xero or Free Agent the full list of approved software