Making Tax Digital for Income Tax – Are you ready?

HMRC is bringing in a new way to report your income. Starting in April 2026, taxpayers will be transferring to new Digital Services accounts.

Who is involved?

From April 2026 taxpayers who reported gross income over £50,000 from Self Employment and/or Property on their 2024/25 tax return will be required to keep digital records and submit quarterly submissions to HMRC.

This income threshold reduces to gross income over £30,000 reported on their 2025/26 tax return will transfer from April 2027.

Finally, in April 2028, taxpayers with gross income over £20,000 on their 2026/27 tax return will transfer from April 2028.

What does this mean?

From 6 April 2026, you will be required to keep digital records using MTD compliant software. This software will be used to submit quarterly updates to HMRC.

When are the submissions due?

 Checklist

☐        Have you linked your MTD software to HMRC?

☐        Do you have a dedicated account for all business transactions? If the account includes personal transactions these will need to be coded to ensure these figures are not sent to HMRC.

☐        Have you linked your business bank account to your software? Most software will connect to your bank feed and download your business bank transactions to the software.

☐        Have you started analysing your business income and expenditure using your software?

☐        Do you need any additional help preparing your quarterly submissions?

If you need help getting a system set up or would like us to deal with everything for you, just get in touch and we’ll be happy to help.