MTD for Income Tax: Important Changes for Self-Employed and Landlords

Making Tax Digital (MTD) for Income Tax is a new system introduced by HMRC that changes how self-employed individuals and landlords report their income. Instead of submitting only one annual Self Assessment tax return, taxpayers within the scope of MTD will be required to keep digital records, submit quarterly updates to HMRC, and complete a final declaration at the end of the tax year.

Who must comply and when

The start date depends on your qualifying income (usually your gross income from self-employment and/or property before expenses):

• Over £50,000 in the 2024–2025 tax year → mandatory from 6 April 2026
• Over £30,000 in the 2025–2026 tax year → mandatory from 6 April 2027
• Over £20,000 in the 2026–2027 tax year → the government plans to lower the threshold (further details to be confirmed)