MTD (Making Tax Digital) For Income Tax

Requirements of MTD for Income Tax

Sole trade businesses and landlords will need to keep and maintain digital records and use HMRC-recognised software to manage, track and send updates to HMRC. Sole traders and landlords earning above £50,000 will need to comply with MTD for IT rules from April 2026. Sole traders and landlords earning above £30,000 will follow in April 2027. And, sole traders and landlords earning above £20,000 will follow in April 2028.

Before April 2026:

• 1 annual submission

• Paper filings by 31st Oct

• Online filings by 31st Jan

• Fine to keep paper records

After April 2026:

• 4 quarterly submissions per business

• 1 annual final declaration submission per individual

• Filing via MTD-compliant software

• Keeping digital records