Online Accountant | Low cost fixed fee accountant
Online accounting services. Fixed fee accounting and tax services
- 0116 298 2425
- enquiries@onlineaccountingservices.co.uk
- 0116 298 2425
- enquiries@onlineaccountingservices.co.uk
Making Tax Digital for Income Tax – What You Need to Know
From 06 April 2026, HMRC are introducing Making tax digital (MTD) for income tax.
MTD income tax requirements will apply to those who receive gross income from self employment and / or property over a certain threshold.
- From April 2026, those with gross income of over £50,000 are mandated
- From April 2027, those with gross income over £30,000 are mandated
- From April 2028, those with gross income over £20,000 are mandated
This income threshold is based on total gross income from all self employment and property sources, not including employment or pension income.
HMRC will review 2024/25 Self Assessment tax returns to identify who is in scope. If your gross income is below £50,000, you won’t be mandated in April 2026, but may be required to comply in later years.
You may also join voluntarily before you’re required to.
What’s Required
Under MTD for ITSA, affected taxpayers must:
- Maintain digital records of income and expenses
- Submit quarterly updates to HMRC
- Provide an End of Period Statement (EOPS)
- File a Final Declaration at the end of the tax year
Quarterly updates will be required for standard quarters, irrespective of a business’s accounting period.
The standard quarters are:
- 6 April to 5 July
- 6 July to 5 October
- 6 October to 5 January
- 6 January to 5 April
Businesses will be able to elect to report for calendar quarters:
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December
- 1 January to 31 March
The deadlines for quarterly updates will be 7 August, 7 November, 7 February and 7 May following the end of the relevant quarter.
Our Service
Navigating these new requirements can be challenging, especially if bookkeeping isn’t your forte. We are here to help UK landlords, sole traders, and small businesses seamlessly transition to Making Tax Digital.
If you don’t currently use any software to maintain your accounting records, we recommend speaking with us before signing up to one. We can manage your quarterly submissions using our in-house software for a small fee – a more cost-effective option than subscribing to software and filing the updates yourself.
We can assist with:
- Evaluating your MTD obligations: Not sure if or when the rules apply to you? We’ll review your situation (income sources, amounts, exemptions) and provide clear guidance.
- Setting up MTD-compliant software: From choosing the right accounting software to getting it configured for your business, we will ensure you’re fully MTD-ready.
- Quarterly and annual filings: Worried about all the new deadlines? We offer services to handle your quarterly updates, End of Period Statements, and Final Declarations for you. Let us take care of the submissions so you can focus on running your business.
- Ongoing support: Have questions or need help fixing a transaction in your digital records? We are just a phone call or email away. We stay up-to-date with HMRC’s latest MTD guidance, so you don’t have to.
E-mail us at enquiries@onlineaccountingservices.co.uk or call us on 0116 298 2425.