Making Tax Digital for income tax (MTD IT) will change how some taxpayers maintain their accounting and tax records and how they transact and communicate with HMRC. It will be phased in from April 2026 for many sole traders and landlords. MTD VAT has applied to all VAT-registered businesses since April 2022. 

The start date for MTD IT is determined by the person’s gross income from self-employment and property. If this is more than £50,000 (based on the tax return for 2024/25), they must maintain digital accounting records and submit quarterly updates to HMRC from April 2026. If their gross income is more than £30,000, they must comply from April 2027. Other taxpayers may be brought within scope at a later date. 

This is covered in our new video – one of a series that aims to give an easily digested description of different aspects of tax that can be readily understood by anyone who is not an expert in that particular field.

We will be adding to the collection in the coming weeks and months, to build up a resource to be used by all accountants. If there is a topic you’d like to see covered, please email Stephen Relf.

Visit ICAEW’s MTD hub to learn more about MTD.