Making Tax Digital (MTD) for Income Tax is now mandatory for self-employed individuals, sole traders and landlords with a qualifying annual income over £50,000 (not including profit or dividends).
Income qualifies when it is earned from self-employment or property rental, exceeds the threshold in a tax year and is subject to UK Income Tax.
The total income is calculated before deducting expenses, tax or allowances.
What are the important dates to remember?
The new MTD requirements mean that you will need to submit updates one month after the end of each period.
For a standard tax year, the deadlines fall on:
How do I stay compliant?
You should take the following steps to ensure you stay compliant:
If you are a sole trader, landlord, or self-employed person with a qualifying income over £30,000, then you have just one year left to prepare for MTD.
It may be wise to get started now to give yourself time to adapt to the new requirements.
From April 2028, sole traders, landlords and self-employed people will be pulled into MTD if their qualifying income exceeds £20,000.
Speak to our team if you have any questions or concerns about preparing for MTD and we will happily assist you.
