Last Updated on 17/02/2026 by Adrian Lamb
Gerry O’Boyle and associates are Accountants from Bangor and Newtownards forming O’Boyle Accounting & Taxation, specialising in saving tax and other costs for small businesses.
Making Tax Digital (MTD) for Income Tax is an important change that will affect how many self-employed individuals and landlords manage their finances and report their earnings to HMRC. Instead of submitting one annual tax return, taxpayers will gradually move towards keeping digital records and sending updates throughout the year using compatible software. Understanding the upcoming deadlines and what they mean is essential, as early preparation can help avoid last-minute stress, penalties, and confusion. By getting familiar with the requirements now, businesses and individuals can ensure a smoother transition to the new digital system and stay fully compliant.
Making Tax Digital (MTD) for Income Tax is an HMRC initiative requiring sole traders and landlords with qualifying income over £50,000 to keep digital records and submit quarterly updates via compatible software, starting from 6 April 2026. This replaces traditional paper records to reduce errors and streamline reporting.
Key Details of MTD for Income Tax
Launch Date: From 6 April 2026, for those with income over £50,000; from April 2027, for those with income over £30,000.
Requirements: You must use HMRC-compatible software to maintain records, send quarterly updates, and submit a final declaration.
Scope: Applies to individuals with self-employment or property income.
VAT: MTD for VAT is already mandatory for VAT-registered businesses with taxable turnover above the threshold.
Exceptions: You can apply for an exemption if you are digitally excluded (e.g., due to age, disability, or location).
How to Prepare
Check Eligibility: Determine if your income exceeds the £50,000 (2026) or £30,000 (2027) thresholds.
Choose Software: Select software that works with MTD for Income Tax.
Digital Records: Transition from manual, paper-based, or spreadsheet systems to digital, real-time record-keeping.
Sign Up: Register for the MTD service via Gov.uk.
