From April 2026, MTD for Income Tax will begin to be compulsory for sole traders and landlords. This will replace the current system of the annual Self-Assessment Tax Return, and instead those affected will have to submit four quarterly updates on income and expenses along with a final declaration at the end of the tax year.

MTD for Income Tax will be phased in:

• April 2026 - for self-employed businesses and landlords with a total business and/or property income above £50,000 per year.
• April 2027 - as above with a qualifying income of £30,000.
• By the end of the current parliament (2029 latest) - as above with qualifying income of £20,000.

We can assist you in your compliance including the initial sign-up process (this will not be automatic and must be done manually!), running your digital records for you, providing training on software for preparing your own bookkeeping, completing or checking your quarterly reports and submission to HMRC, and completing the final declaration to capture additional income, reliefs and allowances.

To find out more about MTD for Income Tax and how it will affect you, contact us today!