Update on HMRC Making Tax Digital changes
Making Tax Digital for Income Tax (MTD for IT) will require sole traders, the self employed and landlords with qualifying income to maintain digital records and update HMRC each quarter. To raise awareness of the change ahead of the April 2026 go-live date, HMRC will be running a high-profile advertising campaign throughout this year.
Key information on qualifying income levels
This change will be introduced in three phases:
- from April 2026, for those with qualifying income over £50,000
- from April 2027, for those with qualifying income over £30,000
- from April 2028, for those with qualifying income over £20,000
Those impacted by the new legislation will be contacted by HMRC in April 2025.
What does the introduction of MTD for IT mean?
To comply with the requirements, those affected must:
- keep their records digitally
- submit digital quarterly updates to HMRC
- use MTD-compatible software to file IT returns
From April 2026, those in scope for MTD for IT will no longer submit an end-of-year tax return through HMRC's online filing service. They will need to make their end-of-year final declaration using HMRC approved MTD software.
We are here to help
Our dedicated Digital Delivery team is available to assist with:
- Selecting, implementing, and setting up a compliant MTD solution
- Providing ongoing support for a smooth transition
If you have any questions or would like to discuss your specific circumstances, please get in touch via the form below or contact your usual Azets advisor.
