What is MTD for Income Tax & Who Needs to Comply?

In the Spring Statement 2025, the government confirmed that Making Tax Digital (MTD) for Income Tax is going ahead.

What is MTD for Income Tax?

MTD for Income Tax is part of HMRC’s plan to digitally transform the UK tax system.

It means that instead of submitting one tax return per year, you’ll need to:

✔ Keep digital records of your income and expenses

✔ Use HMRC-approved accounting software

✔ Send quarterly updates to HMRC

✔ Submit a final declaration at the end of the tax year

Who Will Be Affected?

Phase 1 – Starting April 2026

You’ll need to comply if:

• You are self-employed or a landlord

• Your total income from self-employment and/or property is over £50,000 per year

Phase 2 – Starting April 2027

You’ll need to comply if:

• You are self-employed or a landlord

• Your total income from these sources is over £30,000 per year

Phase 3 – Starting April 2028

You’ll need to comply if:

• You are self-employed or a landlord

• Your total income from these sources is over £20,000 per year

How to Get Ready

To make things easy, we’ll be using the special app – a simple, HMRC-approved tool that helps you track income, expenses, and tax all in one place.

Why start now?

✅ Get used to the app early, without pressure

✅ Keep your records organised

✅ Be fully prepared when the rules kick in

We’re here to help you choose the right software, get set up, and stay compliant with minimal hassle.