Less Than a Year Before Making Tax Digital for Income Tax Starts

This update is for self-employed individuals andlandlords who need to understand what the upcoming start of Making Tax Digital(MTD) for Income Tax means and whether it will apply to them.

With less than a year to go before the new rules begin, it is important to be clear about who will be affected, what changes are coming, and why ignoring MTD now could lead to problems later, especially as making tax degital services in London become more widely used.

What Is Making Tax Digital(MTD) for Income Tax?

Making Tax Digital for Income Tax is a new system that will change how certain taxpayers keep records and report income to HMRC.

Instead of submitting one annual tax return, affected taxpayers will be required to keep digital records and submit regular updates to HMRC using compatible software.

When Does MTD for Income Tax Start?

MTD for Income Tax is scheduled to start from April 2026 for self-employed individuals and landlords whose qualifying income exceeds HMRC’s thresholds.

Although the start date may feel some way off, the transition to digital record-keeping and reporting is a significant change, and many taxpayers will need time to understand how it affects them.

Who Will Be Affected?

MTD for Income Tax is expected to apply to:

• Self-employed individuals
• Landlords

Whether the rules apply to you will depend on your income levels and the type of income you receive. Some taxpayers will be brought into MTD earlier than others, while some may be outside the scope altogether.

Why This Matters Now

Although MTD for Income Tax has not started yet, leaving it until the last minute to check whether it applies to you can create unnecessary pressure.

Taxpayers who are not prepared may struggle to meet digital record-keeping requirements once the rules come into force, increasing the risk of errors and compliance issues.

Penalties and Compliance Risks

HMRC has made it clear that compliance with MTD requirements will be expected once the rules apply.

Failure to follow the new reporting and record-keeping obligations could result in penalties or other compliance action, particularly where taxpayers ignore the requirements altogether.

HMRC Guidance on MTD for Income Tax

HMRC’s official guidance on Making Tax Digital for Income Tax, including who will be affected and when it starts, is available on
GOV.UK.

Will MTD for Income Tax Apply to You?

Not every self-employed individual or landlord will be affected in the same way. For those based in Kingston upon Thames and nearby areas such as Long Ditton and Hinchley Wood, whether — and when — MTD applies will depend on your income levels and individual circumstances. At CIGMA Accounting, we can help you understand how the rules apply to you and what, if anything, you need to prepare for.