03/03/2026
Feel the Rhythm! Feel the Rhyme!
Get on up... it's MTD Time!
Are You Affected?
HM Revenue and Customs is introducing Making Tax Digital (MTD) for Income Tax, and many sole traders and landlords will soon be required to comply.
📌 The Key Figure for the 2026/2027 tax year: £50,000
If your combined gross income from the following sources is £50,000 or more, you will fall within MTD:
• Sole trader (self-employment) income
• UK property (landlord) income
• Or the total of both added together
⚠ Important: This is based on turnover (income before expenses) — not profit.
For example:
You earn £35,000 from your business
And £20,000 from rental income
Your combined total is £55,000, which means MTD will apply to you.
HMRC will be using the 2024/2025 tax returns to see who will be in the initial registration. If, however, you know from April 2026 that you will be over, then you will need to register.
What Will Change?
If you meet the threshold, you’ll need to:
✔ Keep digital records
✔ Use MTD-compatible software
✔ Submit quarterly updates to HMRC
✔ Complete a final end-of-year declaration
This means moving away from the traditional once-a-year tax return process.
Why It Matters
Failing to comply could result in penalties and additional administrative stress. Preparing early ensures a smooth transition and avoids last-minute pressure.
If you're unsure whether the £50,000 threshold applies to you, now is the time to check.
If you’d like help reviewing your position or getting set up correctly, feel free to get in touch.