Making Tax Digital
From April 2026, HMRC began phasing in Making Tax Digital (MTD) for sole traders and unincorporated landlords.
Your MTD start date depends on your turnover:
- If your turnover exceeds £50,000, you need to use MTD from April 2026
- If your turnover exceeds £30,000, you need to use MTD from April 2027
- If your turnover exceeds £20,000, you need to use MTD from April 2028
If your turnover is below £20,000, there is currently no requirement to use MTD.
So, what does this mean in practice?
You’ll need to keep digital records and send quarterly updates to HMRC, reporting your income and expenses for each type of income you have.
For example, if you’re both self-employed and have rental income, you’ll need to send two updates every quarter.
If you’re already using MTD-compatible software, you’ll be able to submit everything yourself.
If not, we offer a range of options to support you, whether you’d prefer to use software or leave it to us.
If you have any questions or would like help getting ready for MTD, feel free to get in touch.
