Essential Insights on Making Tax Digital You Should Know
- Neena Dhesi
- Jul 2
- 1 min read
Who is affected?
If you are self-employed or a landlord, you could be affected by the introduction of Making Tax Digital (MTD).
If you earn a gross annual income above £50,000 from these sources, you are legally required to start maintaining digital records and send quarterly updates of income and expenditure to HMRC from April 2026.
If your gross yearly income is between £30,000 and £50,000, this requirement will apply to you from April 2027.
Important to note: If you start your business part way though the year, HMRC will still require you to be MTD compliant, if the full year extrapolation of your income exceeds £50k.
What does this mean?
There are several requirements you will need to fulfil if you qualify with the above criteria.
This includes:
signing up for MTD for Income Tax via HMRC's website
keeping digital business records
using MTD-compatible accounting software
sending quarterly business income and expenses updates to HMRC through the software
finalising the business's income in a declaration that confirms updates are sent correctly
submitting final declaration to HMRC
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