Acton Cliff Accountancy

Making Tax Digital for Income Tax: what changes for you

By Tracey Hargraves ACAUpdated 5 min read

In short

  • MTD for Income Tax starts from 6 April 2026 for sole traders and landlords with qualifying income over £50,000.
  • The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.
  • You'll need compatible software and must send quarterly updates to HMRC.
From April 2026
Over £50,000
From April 2027
Over £30,000
From April 2028
Over £20,000

What counts as qualifying income?

It's your combined gross self-employment and UK/foreign property income, before expenses, not your profit. Employment income and dividends don't count towards the threshold.

What you'll have to do

Under MTD, the annual return is replaced with a more regular rhythm:

  • Keep digital records in MTD-compatible software
  • Send a summary update to HMRC every quarter
  • Submit a final declaration by 31 January after the tax year

Getting ready

Moving to cloud bookkeeping now, before you're required to, makes the switch painless. We can choose and set up software with you and handle the quarterly submissions, so it becomes routine rather than another job.

Figures are based on HMRC guidance for the 2026/27 tax year and were checked on 28 September 2026. This guide is general information, not personal advice.

How Acton Cliff can help

Accurate, up-to-date records so you always know where you stand. Talk it through with Tracey. A ten-minute call is usually enough to work out your next step.

Call 01606 218302About our Bookkeeping service

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