MTD for Income Tax - The 6 April Deadline is Just Weeks Away - Are you Ready?

With only a few weeks remaining before Making Tax Digital for Income Tax (MTD for IT) becomes mandatory, now is the time to check whether you will be required to comply from 6 April 2026 and to start preparing if you haven’t already.

Who will need to comply from April 2026?

Your start date for MTD for IT is based on your qualifying income from self-employment and/or property.

You will be mandated into MTD for IT from 6 April 2026 if:

• You are a sole trader or run an unincorporated property business, and
• Your qualifying income was £50,000 or more in the 2024/25 tax year

For those with lower levels of income, MTD for IT will be introduced later:

• Sole traders and unincorporated businesses with qualifying income over £30,000 in 2025/26 will be mandated from April 2027
• Those with qualifying income over £20,000 in 2026/27 will be mandated from April 2028.

What will change under MTD for IT?

From 6 April 2026, affected taxpayers will need to:

• Keep their accounting records digitally
• Submit quarterly updates to HMRC
• Submit a final submission each year, confirming all business figures and including any other taxable income, by 31 January

For most taxpayers using standard quarters, the quarterly update deadlines will be:

• 7 August
• 7 November
• 7 February
• 7 May

These deadlines are fixed and apply to everyone within MTD for IT.

How HMRC are identifying who must comply

Although you will not know your exact 2024/25 income until your accounts or tax return have been prepared, HMRC have already been assessing who is likely to fall within the April 2026 mandate.

HMRC confirmed that they are using 2023/24 self-assessment tax returns (filed by 31 January 2025) to identify taxpayers who are likely to meet the £50,000 threshold. Those taxpayers have been, or will shortly be, contacted by HMRC explaining that they are expected to join MTD for IT from April 2026 and why.

If your qualifying income in 2023/24 was close to or above £50,000, and you expected similar or higher income for 2024/25, there is a strong chance that you will be mandated.

Software and support

Under MTD for IT, you will need to use MTD-compatible software to maintain your records and submit quarterly updates digitally to HMRC. While this represents a change in how tax information is reported, the right software can make record-keeping more efficient and give you better visibility over your business finances.

We can help you:

• Confirm whether MTD for IT applies to you
• Choose suitable MTD-compatible software
• Set up the required processes
• Ensure you are fully compliant ahead of the April 2026 start date

Get in touch

If you have received a letter from HMRC, or would like support preparing for MTD for IT, we are here to help.

For more information about MTD compatible software or to book onto the training sessions, please contact Elaine Hardy on 01942 292542 or email elaine.hardy@teamjs.co.uk to discuss the next steps.