Making Tax Digital for income tax (MTD IT) ― overview

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Self-employed businesses and landlords with annual business or property turnover above £50,000 will need to follow the rules for Making Tax Digital for income tax (MTD IT) from 6 April 2026.

Businesses with turnover / gross income over £30,000 will join from 6 April 2027, and there will be further consultation regarding businesses with gross income of £30,000 or less.

At Autumn Budget 2024, the Government announced its intension to extend MTD IT to sole traders and landlords with turnover / gross rental income over £20,000 by the end of this Parliament. See Overview of tax legislation and rates (October 2024), para 2.41. Spring Statement 2025 announced April 2028 as the start date for these businesses.

Links to all HMRC guidance are available on GOV.UK, Making Tax Digital for Income Tax. See also Simon’s Taxes A4.172A (MTD background), A4.173 (using MTD IT) and A4.174 (thresholds and exemptions).

Alongside the introduction of MTD, there will be a new late filing penalty regime. For more details, see below and Simon’s Taxes A4.558

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