28 October 2025

April 2026 might feel a long way off, but for self-employed individuals and landlords earning over £50,000 a year, the clock is ticking.

That’s when Making Tax Digital for Income Tax becomes mandatory, and the sooner you start preparing, the smoother the transition will be.

 

A reminder of who's affected

From 6 April 2026, if you're a sole trader or a property landlord with a total gross income of £50,000 or more, you'll be required to comply with MTD for Income Tax. This means:

 

• Keeping digital records of your business income and expenses
• Sending quarterly updates to HMRC via MTD compatible software
• Submitting a Final Declaration (the new tax return) to HMRC by 31 January each year

If your gross income falls between £30,000 and £50,000, you'll be brought into the regime in April 2027. Those with incomes between £20,000 and £30,000 will have to comply from April 2028.

 

What's changed recently

While the core rules haven't shifted much in 2025, HMRC has confirmed that:

 

• There'll be no more paper records – it's all digital, all the time.
• You'll need MTD compatible software – whether that's accounting/bookkeeping software or bridging software if you still want to use spreadsheets.
• Quarterly income and expense submissions are an added layer of admin if you're not prepared.

The bottom line? This isn't something you can leave to the last minute. Getting yourself set up with the right software now will give you time to adjust before your deadline.

 

Want more information about MTD for Income Tax

Haines Watts has put together this helpful guide for individuals and landlords affected by MTD for Income Tax. It explains who's affected, what's changing, and how to prepare:



Alternatively, get in touch with your local Haines Watts office.

 

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