MTD IT is a new obligation for some taxpayers to report income and expenses to HMRC digitally every three months. And it’s now only weeks away.
When MTD IT applies to you
Making Tax Digital for Income Tax (MTD IT) is being phased in from 6 April 2026 for sole traders and landlords with qualifying income over particular thresholds. From April 2026, sole traders and landlords with qualifying income more than £50,000 for the 2024/25 tax year will have to join MTD IT. On HMRC’s figures, that means some 864,000 taxpayers will need to get to grips with the new rules.
From April 2027, sole traders and landlords with qualifying income over £30,000 for the tax year 2025/26 will be expected to join MTD IT. From April 2028, it’s the turn of sole traders and landlords with qualifying income over £20,000 for the tax year 2026/27.
What you’ll need to do differently
Under the new rules, taxpayers must keep digital records of income and expenses. MTD-compatible software is then used to send updates of income and expenses to HMRC every three months. In addition to these quarterly updates, there is an end-of-year tax return, also filed via MTD software.
HMRC letters and what to do next
If you are affected in 2026, HMRC should have written to you confirming that you must join MTD IT. If not, you should expect to receive one in the coming weeks. The letter includes a QR code, which you can scan to access further information. You can also find out more simply by visiting here.
Concerned about what an upcoming HMRC letter on MTD IT could mean for you? We’ll explain the requirements and guide you through the steps you need to take.
Software, systems and support
MTD IT represents a major change in the way you interact with HMRC. It is important that you have the right software in place, and are confident using it. Alternatively, you will need to arrange for a competent third party to maintain the records and make the submissions on your behalf. The need to send updates to HMRC each quarter is something that moves record keeping and reporting very much closer to real time.
How we can help
We are here to help support you through your entry to MTD IT. Click below to get in touch with us.