From April 2026, all sole traders and most landlords will have to follow new rules under Making Tax Digital (MTD) for Income Tax. For some people, this will be the biggest change to their tax reporting in years.
If you’re self‑employed or receive income from property, now is the time to understand what’s coming and what it means for you.
What is Making Tax Digital for Income Tax?
Under Making Tax Digital, HMRC will require affected taxpayers to keep digital records, submit quarterly updates to HMRC and use MTD-compatible software.
This replaces the traditional once a year Self-Assessment process for income tax.
Commenting on the new Making Tax Digital (MTD) tax rules, Helen Marshall, Private Client Tax Manager at Burgis & Bullock said: “MTD isn’t just a reporting change – it’s a change in how people manage their financial records throughout the year.
“MTD applies if your total income from self‑employment, and/or property exceeds £50,000 in April 2026 then the threshold drops to £30,000 in April 2027 and £20,000 in April 2028. This is based on income, not profit. So even if your margins are tight or your expenses are high, you may still be caught by the rules.”
Who Will be Affected?
MTD for Income Tax is relevant to a wide range of people, including all sole traders and most landlords with rental income.
What Will Change in Practice?
Instead of filing just one tax return each year, you will need to keep your records digitally throughout the year, submit quarterly updates summarising your income and expenses and complete an end‑of‑year declaration.
While this might sound daunting, with the right systems and support in place, it doesn’t have to be.
Helen continued: “The businesses that prepare early tend to find MTD far less stressful than those who leave it until the last minute. HMRC has been clear: digital compliance is no longer optional. Early preparation is key as it offers more choice over software, time to adapt processes and fewer surprises once quarterly reporting begins.”
How Burgis & Bullock Can Help
Our role isn’t just to explain the rules – it’s to help clients feel confident that they’re doing the right thing.
Our experienced tax specialists understand that MTD can feel overwhelming, especially when HMRC guidance is often technical and unclear. We offer plain English explanations, practical advice tailored to your situation, clear timelines and next steps and honest answers to real‑world questions.
Need help preparing for Making Tax Digital?
If you’d like clear advice on whether MTD applies to you, what software might work best, or how to get ready without stress, contact your local office today https://www.burgisbullock.com/contact-us/
We are also hosting free monthly MTD briefings, so please feel free to choose a convenient date from the list on our website: www.burgisbullock.com/events/
We’re here to help you move forward with confidence.
making tax digital for income tax