Making Tax Digital for Income Tax: What clients need to know

Making Tax Digital for Income Tax, or ‘MTD for IT’ for short, is now live with HMRC progressing its rollout.  MTD for IT is a compulsory scheme that will affect how individuals report income to HMRC.

The MTD for IT regime became mandatory from 6 April 2026 if an individuals’ self-employment and/or property rental income (UK & foreign) were in excess of £50,000 in the 2024/25 tax year.  HMRC plan to reduce this threshold to £30,000 and then £20,000 in subsequent years.

A separate quarterly submission will be due for each self-employment, if an individual has more than one trade.  UK property information is aggregated and submitted on a separate quarterly return. Foreign property is also aggregated and put on its own separate quarterly return.

Please see the HWB Factsheet, you can read more about HMRC’s MTD for IT initiative by heading to www.gov.uk and searching ‘Making Tax Digital for Income Tax’.

If you would like advice on how MTD for Income Tax will affect you or your property or business reporting, please contact Nick Whitemore on 023 8202 7498 or email Nick Whitemore.