Making Tax Digital is a UK government programme designed to modernise the tax system. Its goal is to reduce errors, streamline the process of tax filing, and ultimately make tax administration more efficient. Under MTD, taxpayers are required to keep digital records and submit tax returns through compatible software.
• April 2026: MTD for Income Tax Self-Assessment (ITSA) for Self-Employed and Landlords
From April 2026, self-employed individuals and landlords earning over £50,000 annually will be required to comply with MTD for Income Tax Self-Assessment (ITSA). They must keep digital records of their income and expenses and send quarterly updates to HMRC through MTD-compatible software. This is a significant expansion of the MTD programme and represents the next phase in the government’s plan to make tax reporting easier and more efficient.
• From April 2027: self-employed individuals and landlords earning over £30,000 annually will be required to switch to MTD reporting as well.
MTD Requirements: What Does MTD Compliance Mean?
1. Keep Digital Records
2. Use MTD-Approved Software
3. Quarterly Submissions
4. Final End-of-Period Statement
For more information please visit the website below;
https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax
