Making Tax Digital
creeps on
Self-employed individuals and landlords with turnover of more than £50,000 will have to report their income and expenditure to HMRC using Making Tax Digital (MTD) from April 2026. From April 2027, those with turnover above £30,000 will have to use MTD. Smaller businesses (under £30,000) will be able to sign up voluntarily.
These dates may seem a long way off, but MTD for Income Tax Self Assessment (MTD for ITSA) is a big change and you need to start preparing for it now. Businesses and landlords will have to use MTD compatible software to:
The first step is to get accounting software that works with MTD and meets your precise needs. HMRC has published a list of compatible software available from commercial providers. Most VAT-registered businesses will already be using MTD-compliant software so only need to check that it can also deal with self-assessment.
Meeting different needs
Further information on this topic can be found here.