HMRC’s Making Tax Digital (MTD) for Income Tax is no longer something “coming one day”.
For some people it’s already started, and many more will be pulled in over the next couple of years.
If you’re:
🏡 A property investor/landlord (not a Limited Company)
🔧 Self-employed
💼 Running a side hustle alongside employment
… this is something you need to start paying attention to now.
So what actually is MTD?
In simple terms, HMRC is moving away from the traditional once-a-year tax return system and towards digital record keeping with more regular reporting. Instead of pulling everything together once a year in a January panic 😅, businesses and landlords within the rules will need to:
✅ Keep digital records
✅ Use compatible software
✅ Submit quarterly updates to HMRC
✅ Submit a final year-end return to HMRC
Who does this affect?
📌 From April 2026
Self-employed individuals and landlords with qualifying income (not profit!) over £50,000 (Based on 24/25 income)
📌 From April 2027
Threshold reduced to £30,000 (Based on 25/26 income)
📌 From April 2028
Threshold reduced again to £20,000 (Based on 26/27)
And remember, this applies to TOTAL qualifying income from self-employment and property combined, not per business or property.
Why should you prepare early?
Because waiting until the last minute usually means:
❌ Scrambling to learn software
❌ Poor bookkeeping
❌ Missing information
❌ Stress and panic
❌ Potential penalties
The businesses that will cope best are the ones already keeping tidy digital records and reviewing their numbers regularly.
Which is a really good habit to build!
If you’re unsure whether MTD will affect you, or you’d like help getting systems and software in place before the deadlines arrive, get in touch with us.