Making Tax Digital for Income Tax
Self Assessment Tax Returns are changing
Making Tax Digital for Income Tax (MTD for IT) will completely transform Self-Assessment tax returns for sole traders and landlords.
From April 2026 onwards, sole traders and landlords who meet the income threshold will have to:
- Sign up for MTD for IT
- Keep digital accounting records using MTD compatible software
- Submit quarterly updates to HMRC, and
- Make a year-end submission digitally (equivalent to the relevant pages on the current tax return)
Who is in scope for Making Tax Digital for Income Tax and what are the key dates?
| Date | Who’s in scope? |
| April 2026 | Landlords and sole traders with trading and/or property income over £50k in the tax year ending 5 April 2025 |
| April 2027 | Landlords and sole traders with trading and/or property income over £30k in the tax year ending 5 April 2026 |
| April 2028 | Landlords and sole traders with trading and/or property income over £20k in the tax year ending 5 April 2027 |
Note: the thresholds are based on income and not profit. If you have multiple relevant sources of income (such as a trade and a rental property) then it is the combined income that must be considered. You do not, though, combine income sources when it comes to actually keeping digital record and making quarterly submissions: each needs to be recorded and reported separately.
HMRC will write to any tax payers they think will be in scope based on the previous year’s tax return, however they won’t automatically sign you up, so you or your accountant/agent will need to sign up in plenty of time to submit your first quarterly update.
How do I prepare for Making Tax Digital for Income Tax?
If you meet the criteria for MTD for IT and you keep your accounting records manually or on Excel spreadsheets then you need to start using an MTD compatible digital accounting software package before the deadlines.
It’s best to do this at the start of your financial year to make the transition easier but it is possible to start using accounting software at any time.
If you’re not in scope for the next phases of MTD for IT then you don’t need to take any further action at this point. You will continue to submit your annual Self Assessment tax return as you have done previously.
How Moore can help with MTD for Income Tax
Our Making Tax Digital specialists in Peterborough, Corby and Northampton can guide you through the process every step of the way. We can:
- Advise on the best accounting software package for you.
- Get you set up on compatible digital accounting software and provide training on how to use it correctly.
- Sign you up for MTD for IT when you meet the threshold.
- Submit your quarterly updates to HMRC.
- Prepare and submit your annual tax return, ensuring you are making the most of any tax reliefs available and are fully compliant and meeting all deadlines.
- Act as the first point of contact for HMRC in case of any queries.
Get in touch for bespoke Making Tax Digital for Income Tax support and advice
If you would like to find out more, or to get a bespoke quote, please contact us by email at east.midlands@mooreuk.global, fill in our contact us form or call one of our offices:
- Corby: 01536 461900
- Peterborough: 01733 397300
- Northampton: 01604 654254