Income Tax Making Tax Digital (MTD)

Making Tax Digital for Income Tax (often called MTD for Income Tax or MTD ITSA) is a UK government initiative that changes how certain individuals and landlords keep records and report income tax to HMRC. This page explains what MTD is, who it applies to, what will change, and how to prepare.

MTD for Income Tax will apply to:

Self‑employed individuals

and

Landlords

...where their combined gross income from self‑employment and/or property exceeds certain thresholds.

Planned start dates

· From April 2026: individuals with qualifying income over £50,000
· From April 2027: individuals with qualifying income over £30,000

Qualifying income means turnover, not profit. At present, MTD for Income Tax does not apply to:

Limited companies
Individuals with only PAYE income
Most partnerships (separate rules are expected in the future)

What software will I need?

You must use MTD‑compatible software to:

Keep digital records
Submit quarterly updates
Submit year‑end declarations

There are many software options available, ranging from simple record‑keeping apps to full accounting systems. We can help you choose software that suits your business and level of complexity.

How we can help

We will support you at every stage of MTD, including:

Confirming whether and when MTD applies to you.
Setting you up and training you on suitable software...
...or taking on all your accountancy and tax MTD obligation on your behalf.
Submitting quarterly updates on your behalf.
Completing year‑end statements and final declarations.
Acting as your agent with HMRC

Our aim is to ensure compliance while keeping the process as simple and stress‑free as possible.

Next steps

If you are likely to be affected by MTD for Income Tax, or would like to prepare in advance, please contact us. We will be happy to discuss how MTD will impact you personally and agree the best way forward.

If you needs help, guidance or are interested in our MTD for income Tax offerings, call Paul on 01895-473824 for a guideline low cost fixed fee quote, tailored to your needs.

We service clients in the Middlesex, South Buck and West London areas, including: Uxbridge, Hillingdon, Ickenham, Ruislip, Eastcote, Hayes, Harefield, Northwood, Cowley, West Drayton, Denham, Iver, Gerrards Cross Buckinghamshire ....and all surrounding districts. br />
Call 01895 473 824 for a no-obligation free initial consultation.

We are advisors and consultants offering advice in all tax and accounting matters including: Business Tax, Personal Tax, Individual Taxes, "Self Assessment" tax returns, accounting, payroll, book keeping, bookkeeping, Management Consultancy, Corporation Tax, VAT, PAYE, NIC, CIS, IR35, CT600, Inheritance Tax, IHT, and others.