News
Just over half a year left to prepare for MTD for Income Tax – Act now
15 September 2025
The Government’s Making Tax Digital (MTD) for Income Tax is now only a matter of months away.
It is important that you are prepared and understand how the changes could affect you as the phased introduction of this new tax reporting regime begins in April 2026.
For individuals who complete self-assessment tax returns, the way you report and communicate are changing and it is important that you prepare now.
When do the new laws come into effect?
From April 6, 2026, individuals completing Self-Assessment tax returns with an annual turnover or gross income exceeding £50,000 will be required to follow the new MTD for Income Tax legislation.
The threshold will gradually decrease year on year, dropping to £30,000 from April 2027 and £20,000 from 6 April.
Your income tax return from the 2024/25 tax year will determine when the MTD for Income Tax laws apply to you, so if you are likely to be affected from April 2026 and you aren’t prepared yet, speak to our team today.
What will I need to do?
Once you are required to follow the new MTD for Income Tax regulations, you will need to maintain digital account records as paper records will not be accepted.
It is recommended you incorporate cloud accounting software into your current processes to ensure all reporting is accurate.
Whilst it will be possible to continue to report your income using spreadsheets by relying on bridging software, HMRC compliant software is recommended.
As well as maintaining digital account records, you will need to submit quarterly updates to HM Revenue and Customs (HMRC) and confirm your tax position at the end of the tax year.
Your updates must be submitted through the HMRC app or through an external agent, such as an accountant who can file the updates on your behalf.
Act and prepare now
Preparation is key because you will need to change your Self-Assessment processes to deal with quarterly reporting and get comfortable using software and technology to submit information to HMRC.
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