If you’re self-employed or a landlord, you’ve probably heard about Making Tax Digital (MTD) for Income Tax (we’ve been mentioning it since it was first announced nearly a decade ago!)
With the first deadline finally arriving in April 2026, now is the time to understand whether—and when—you’ll need to comply.
The good news? The rollout is happening in phases, which gives you time to prepare. But understanding which phase you fall into is crucial to avoid being fined.
Phase 1: April 2026 – Income Over £50,000
If your combined gross income from self-employment and property is over £50,000, you’ll need to start complying with MTD from April 2026. HMRC has already begun sending letters to those affected, based on income reported on 2024/25 tax returns.
Phase 2: April 2027 – Income Between £30,000–£50,000
Individuals with qualifying income between £30,000 and £50,000 will come into scope from April 2027, giving those in the first bracket a year’s head start.
Phase 3: April 2028 – Income Between £20,000–£30,000
A further phase is planned, though details are still being confirmed.
How to check
When you’ve submitted your 2024/25 tax return (due by 31 January 2026) you’ll know your turnover value – this is the key indicator as to when you’ll be mandated to take part.
Making Tax Digital isn’t about doing more work—it’s about doing it differently. By preparing early and understanding your deadline, you’ll avoid last-minute scrambling and penalties.
