Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (MTD for IT) is being introduced for individuals with income from self-employment and/or property.

The rules apply based on qualifying income and are being introduced in stages. The current thresholds are:

• More than £50,000 of qualifying income – MTD applies from 6 April 2026
• More than £30,000 – MTD applies from 6 April 2027
• More than £20,000 – MTD applies from 6 April 2028

These rules primarily affect sole traders and landlords, subject to the relevant legislation, exemptions and eligibility requirements.

Making Tax Digital for Sole Traders

If you are a sole trader and your qualifying income means you are required to use MTD for Income Tax, you will need to use compatible software to keep digital records and send quarterly updates to HMRC.

Adept Accountax can help you:

• Set up compatible MTD accounting software
• Maintain digital records of business income and expenses
• Record and categorise business transactions
• Prepare and submit quarterly updates to HMRC
• Review your digital records for accuracy
• Prepare your year-end information and tax return
• Understand your MTD obligations and reporting deadlines

Quarterly updates are summaries of your self-employment and property income and expenses; they are not tax returns.

Making Tax Digital for Landlords

If you receive property or rental income, you may need to use MTD for Income Tax depending on your qualifying income.

We can help landlords prepare for MTD by:

• Setting up compatible accounting software
• Recording rental income digitally
• Recording property expenses
• Maintaining digital property records
• Preparing and submitting quarterly updates
• Reviewing property income and expenses
• Preparing year-end information
• Assisting with your personal tax return

If you have both self-employment and property income, these sources may need to be considered when determining whether you meet the qualifying-income threshold for MTD for Income Tax.

What Does MTD for Income Tax Require?

Where MTD for Income Tax applies, you will generally need to use compatible software to:

Being within MTD for Income Tax does not mean that every type of personal income needs to be kept as a digital record for quarterly updates.

For example, other income such as employment income, pension income, dividends, savings income and an individual’s share of partnership profits may still need to be included in your tax return where applicable.

At Adept Accountax, we can help you bring together your different sources of income and ensure your personal tax affairs are properly considered alongside your MTD obligations.

Our Making Tax Digital Accounting Services

Our comprehensive MTD services include:

• MTD for VAT
• MTD for Income Tax
• MTD for Sole Traders
• MTD for Landlords
• Digital bookkeeping
• Digital record keeping
• Quarterly updates to HMRC
• VAT return preparation and submission
• Accounting software setup and support
• MTD software and system advice
• Year-end tax return preparation
• HMRC compliance support
• Ongoing MTD accounting support

Why Choose Adept Accountax for Making Tax Digital?

Making Tax Digital involves more than simply submitting information online. You need suitable software, accurate records and processes that allow information to be reported correctly to HMRC.

At Adept Accountax, we help businesses, sole traders and landlords understand the MTD requirements that apply to them. We can manage the accounting and reporting process on your behalf, giving you more time to concentrate on your business or property activities.

Whether you need help with MTD for VAT, MTD for Income Tax, digital bookkeeping or quarterly reporting, we can provide practical support tailored to your circumstance