Making Tax Digital for Income Tax will be rolled out to the self-employed and landlords in stages from April 2026.
Does it impact you?
Making Tax Digital for Income Tax will be mandatory for the self-employed and landlords with what’s called gross qualifying income over a particular threshold. Note that the income thresholds are before the deduction of expenses. Where both self-employment and rental income are received, it is the total that is considered.
• Where qualifying income is more than £50,000 from self-employment/property, you are in Making Tax Digital for Income Tax from April 2026, with a first quarterly filing due by 7 August 2026.
• Where qualifying income is more than £30,000 from self-employment/property, you are in Making Tax Digital for Income Tax from April 2027, with a first quarterly filing due by 7 August 2027.
• Where qualifying income is more than £20,000 from self-employment/property, you are in Making Tax Digital for Income Tax from April 2028, with a first quarterly filing due by 7 August 2028.
The thresholds will be assessed based on the most recently filed tax return. This means it’s the returns for 2024/25 that determine whether you are in Making Tax Digital for Income Tax in 2026/27.
Prepare for future tax regulations and adapt to the ever-evolving fiscal landscape, where effective tax planning is paramount.
At Godfrey Mansell & Co Accountants, we understand the unique challenges that small and medium-sized enterprises (SMEs) face in Halesowen, Bromsgrove, Birmingham and beyond.
Our expertise in accounting, tax advisory, and taxation services positions us as a trusted partner for business owners seeking to navigate the complexities of tax obligations and optimise their financial outcomes.
Get in touch with us today to find out more and to subscribe to our Making Tax Digital [MTD] for Income Tax Newsletter:
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