If you complete a Self Assessment tax return, you’ve probably been hearing about Making Tax Digital (MTD) for what feels like a long time. The change is now very real, and the first wave of taxpayers will be brought into the regime from 6 April 2026.
In other words, MTD for Income Tax is no longer something “for the future” – it is just around the corner.
Who does this affect?
From 6 April 2026, MTD for Income Tax will become mandatory for a significant number of Self Assessment taxpayers.
You are likely to be within scope if, in the 2024/25 tax year, your combined turnover from your sole trade and/or property business was more than £50,000.
If you fall into this category, you will need to keep digital records and submit income and expense information to HMRC using compatible software, rather than relying solely on your traditional annual tax return.
Further groups of taxpayers will then be brought into MTD in 2027 and 2028, so this is a change that will eventually affect many more people.
What does this mean in practice?
For those within scope, MTD will mean:
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keeping digital records for your business or property income
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using MTD-compatible software
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sending regular updates to HMRC throughout the year, rather than just once at year end
For some business owners and landlords, this will feel like a big shift in how their tax affairs are managed.
You don’t have to do this alone
Over the past year, A&C Chartered Accountants has already been helping many clients prepare for MTD, testing systems, and getting processes in place so the transition is as smooth as possible.