Making Tax Digital Coming April 2026

The proposals for certain individuals to comply with Making Tax Digital for income tax are now a little more than 12 months away with the new rules set to come into force from 6 April 2026.

Broadly speaking this will apply to individuals who have a turnover from self-employment and/or rental income that exceeds £50,000. The limit is then set to be reduced to £30,000 from 6 April 2027, with those with income between £20,000 and £30,000 included at a later date.

Your turnover for the 2024/2025 tax year will be used to determine whether or not you should be registered. It is worth noting that it is your turnover and not profit that determines whether you should be registered.

Another point worthy of note is that if you have a self-employment with turnover of £40,000 and a rental property with turnover of £12,000 then it is the combined turnover that will be used to decide if you should be registered.

To give an idea as to how MTD for Income Tax will work in practice the table below explains what the new reporting requirements are and the respective filing deadlines :-

Alternatively, businesses can make a “calendar quarter election” which allows them to draw up quarterly updates to the end of the previous month.

Where this election is made the quarterly updates will be as follows :

If you are not already keeping records electronically it will be necessary to move to digital record keeping to comply with Making Tax Digital and you should contact your usual advisor for further information.