for Income Tax
Making Tax Digital for Income Tax
From April 2026 Making Tax Digital (MTD) for Income Tax will apply to sole traders & landlords with total gross business and/or property income above £50,000 per year. From April 2027, those with total gross business and/or property income of over £30,000 will also be required to comply with the MTD requirements.
MTD requires you to:
- Sign up ahead of your first accounting period that begins on or after 6 April 2026 (or April 2027 depending on your gross income levels)
- Keep records of your business income and expenditure in a digital format
- Send quarterly income and expenses figures to HM Revenue and Customs
- Submit an end of period statement & a final declaration
You can apply for exemption from the rules in some circumstances: Apply for an exemption.
There is a pilot scheme currently up and running for businesses that want to join MTD now: Sign up for MTD for Income Tax
The due dates for your tax payments will remain as 31 January and 31 July.
Speak to an expert…
Julie Clayton
Corporate Manager, Tax & Employer Solutions
As a business, what should you be doing now?
Determine whether you're impacted by the changes
Make or review your existing plan
If you already keep digital records, check if these meet the new requirements. If not, think about what system you might want to use.
Consider signing up for the pilot.
The good news is that we can assist with all of the above.
Our in-house experts can advise on the best system for your business or rental portfolio record keeping requirements, help you get set up and provide training.
Once you are up and running you might start to see other advantages, such as real time bank balance information.
Here’s some of the great benefits Making Tax Digital offers:
Big reduction in paperwork.
Making use of the technology that’s now available to businesses can massively reduce the amount of paperwork you have to deal with & store.
Greater management control.
The words “tax” and “digital”, especially when used together, can be a worrying prospect. But trust us; Making Tax Digital is a great opportunity for small businesses to improve their record keeping and get up to date figures, including your potential liability, at the touch of a button.
Saving time – and lots of it!
Using simple online accounting software can save you time every month. You can get software that “talks” to your bank account and receipt scanning apps to save time manually inputting figures.
More time to focus on your business.
We promise you, using a programme such as Xero, Quickbooks, Kashflow, Sage etc, will give you more time to concentrate on your business, remove the year end panic and more importantly, help you get money into your business more quickly.
If you would like to know more about Making Tax Digital, or the potential implications for your business, then click on the brochure link below from our digital partners at Sage.
A Guide to MTD for Income Tax
‘Using Software like Sage means there is no last minute rush trying to get everything together, including a big box of paper receipts & invoices; it’s all there at the touch of a button.’
Rebecca Hope
Office Manager, Stubbins & Hope Funeral Directors
How can we help you?
