Making Tax Digital UK 2026: MTD for Income Tax for Landlords & Self-Employed
September 11, 2025
What is Making Tax Digital UK 2026 (MTD)?
- MTD is a UK government initiative requiring businesses, landlords, and self-employed people to use digital systems to keep tax records and send tax information to HMRC digitally.
- It’s meant to make tax admin more efficient, reduce errors, and move toward more “real-time” record keeping.
- MTD for VAT has been in force since April 2019 for many businesses, and expanded since then.
What’s New / What’s Changing in MTD for 2026
The biggest upcoming change is
MTD for Income Tax, also often called
MTD for ITSA (Income Tax Self Assessment), especially for sole traders and landlords. Here are the key points:
| Phase |
Who it affects |
Requirements |
From when |
Phase 1
|
Sole traders & landlords with qualifying income over £50,000 (from self-employment + property)
|
Must keep digital records, use MTD-compatible software, submit quarterly updates to HMRC during the year, and still do an end-of-year declaration. |
From 6 April 2026 |
Phase 2
|
Those with qualifying income over £30,000
|
Same requirements as above |
From 6 April 2027 |
Phase 3
|
Income threshold becomes £20,000
|
Same requirements |
From 6 April 2028 |
Other points to note:
- HMRC is encouraging eligible people to sign up for pilot / testing programmes in advance, so you get familiar with the system.
- The definition of “qualifying income” includes gross income from self‐employment + property (before expenses) from UK (and sometimes overseas) sources.
- There are certain exemptions (for example, if it’s not reasonably practical to use digital tools, or other specific cases)
What to Prepare / What You’ll Need to Do
If this will affect you (or someone you know), some steps to take ahead:
- Check if your income (self-employment + property) is above the thresholds in the coming years.
- Choose accounting or record-keeping software that is “MTD-compatible.” Spreadsheets alone will not suffice unless they meet certain requirements or are linked via bridging software.
- Start keeping accurate digital records of income & expenses (if you aren’t already).
- Be ready to submit quarterly updates to HMRC (rather than only annual Self Assessment). These are smaller returns or summaries during the year.
- Plan for the “end of period statement” + final declaration / self-assessment filing as per old style, but in the new system.
If you like, I can work out what
you personally will need to do (based on your income / property etc.), and key dates relevant for you. Do you want that?
✅
About Tax Return Assist Ltd
At
Tax Return Assist Ltd, we specialise in
Self-Assessment, Tax Returns, VAT, Bookkeeping, and Making Tax Digital (MTD) compliance. Based in
Grays, Essex (UK), we support individuals, landlords, and businesses across the UK with clear, reliable, and affordable tax services.
📍 Address: Grays, Essex, United Kingdom
🌐 Website: www.taxreturnassist.co.uk
📞 Email:
contact@taxreturnassist.co.uk
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