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.

HMRC has created an online tool to check if a business is within scope of MTD on GOV.UK at Check if you need to use Making Tax Digital for Income Tax.

Voluntary sign-up to MTD is also available for UK residents who have returns and payments that are up to date, and are either a sole trader or a landlord that rents out UK property. Voluntary

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