Making Tax Digtial
HMRC is modernising tax reporting with the rollout of Making Tax Digital for Income Tax (MTD IT). The new system will require self-employed individuals and landlords to keep digital records, send quarterly updates, and file an annual digital declaration using approved software. This aims to reduce errors and make managing tax obligations easier.
What You Need to Know
HMRC is modernising tax reporting with the rollout of Making Tax Digital for Income Tax (MTD IT). The new system will require self-employed individuals and landlords to keep digital records, send quarterly updates, and file an annual digital declaration using approved software. This aims to reduce errors and make managing tax obligations easier.
Who Will It Affect?
MTD IT is being introduced in stages: From April 2026:
Applies to anyone with combined self-employment and property income over £50,000, based on 2024/25 tax returns.
From April 2027:
Extends to those earning £30,000–£50,000.
From April 2028:
Further extends to those earning £20,000–£30,000.
HMRC is still reviewing the rules for individuals earning below £20,000.Important: The thresholds are based on total turnover, not profit, and include all self-employed and property income combined.
Support is available locally through MJ & CO Accoutnats in Shrewsbury to help individuals prepare and make the transition smoothly. You can either call us on 01743 271071 or visit our website
