The UK’s tax system is changing for the self-employed and landlords
Making Tax Digital for Income Tax: What You Need to Know
The UK’s tax system is changing, and if you're self-employed or a landlord, you may need to update the way you report your income. Making Tax Digital (MTD) for Income Tax is becoming mandatory for many taxpayers, and now is the time to start preparing.
Who Needs to Switch to MTD for Income Tax?
From 6 April 2026, if your total income from self-employment and property is over £50,000, you’ll be required to use MTD for Income Tax. This means you must keep digital records and submit updates to HMRC using approved software.
How Will You Be Notified?
HMRC will start sending letters in April 2025 to those whose 2023 to 2024 Self Assessment tax return shows an income close to or above £50,000. If you receive one of these letters, it means you may need to comply with MTD for Income Tax.
What Should You Do Now?
To make the transition easier, here’s how you can start preparing now:
Understand the changes: Learn what MTD for Income Tax means for you and how it affects your tax reporting.
Choose the right software: Ensure you are using HMRC-approved MTD-compatible software for digital record-keeping.
Sign up early: You don’t have to wait until 2026 - you can sign up now and get ahead of the deadline.
Get professional help: If you’re unsure, speak to an accountant or tax professional who can guide you through the process.
How to Sign Up for MTD for Income Tax
You can sign up now to ensure you're ready before the deadline. HMRC has a step-by-step guide to help you through the process: Making Tax Digital for Income Tax.
Final Thoughts
The shift to Making Tax Digital for Income Tax is an important change, but by preparing early, you can avoid stress and ensure compliance.
Start getting ready today to make the transition smooth and hassle-free. Speak to us if you need help or assistance.