MTD for Income Tax: The Deadline Is Approaching

This update is for self-employed individuals and landlords who are aware that Making Tax Digital (MTD) for Income Tax is approaching and want to understand whether the rules will apply to them.

As the deadline moves closer, it is important to be clear about who will be affected, what HMRC expects, and why leaving this unchecked could create compliance issues later.

What Is MTD for Income Tax?

Making Tax Digital for Income Tax is a change to the way certain taxpayers keep records and report income to HMRC.

Under MTD, affected taxpayers will be required to keep digital records and submit regular updates to HMRC using compatible software, rather than relying solely on a single annual tax return, whether managed independently or via making tax digital services in London.

Deadlines for Making Tax Digital for Income Tax

MTD for Income Tax starts 6 April 2026 for the self-employed and landlords with £50k+ income. Plan early to stay compliant and avoid disruption.

MTD represents one of the most significant overhauls to the self-assessment regime since its introduction in 1997. This includes new requirements to keep digital records, using MTD-compatible software, and submitting quarterly updates of income and expenses to HMRC.

From April 2026, self-employed individuals and landlords with annual qualifying business or property income over £50,000 will be required to comply with the MTD for Income Tax rules. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.

This first rollout of MTD for Income Tax will affect approximately 780,000 taxpayers, with the next stage following in April 2027, extending the rules to those earning between £30,000 and £50,000. A further expansion, announced during the Spring Statement 2025, will apply MTD obligations to those with income over £20,000 from April 2028. The government is still considering the best approach for individuals earning below this lower threshold.

HMRC is asking some eligible taxpayers to sign up to its MTD testing programme on GOV.UK. This provides an opportunity to get comfortable with the new process before it becomes mandatory. Importantly, penalties for late submissions will not apply during the testing phase.

This move follows the rollout of MTD for VAT, which according to an independent report prepared for HMRC has helped over two million businesses improve accuracy and reduce errors.

As the deadline approaches, it is important to start planning in order to ensure a smooth transition to the new way of reporting Income Tax.

When Does MTD for Income Tax Apply?

MTD for Income Tax is scheduled to begin from April 2026 for self-employed individuals and landlords whose income meets HMRC’s criteria.

Although the rules have not yet started, the deadline is now close enough that taxpayers should understand whether they fall within scope.

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 qualifying income and the type of income you receive. Some taxpayers will be brought into MTD sooner than others, while some may remain outside the scope.

Why It Matters to Check Now

Even though MTD for Income Tax has not yet started, waiting until the rules are in force can leave little time to understand what is required.

Knowing in advance whether MTD applies to you allows time to adjust record-keeping practices and avoid last-minute compliance pressure.

Penalties and Compliance Risks

HMRC expects taxpayers who fall within MTD for Income Tax to comply with the new digital record-keeping and reporting requirements once they apply.

Failure to meet these obligations could result in penalties or further compliance action, particularly where taxpayers do not take reasonable steps to follow the rules.

HMRC Guidance on MTD for Income Tax

HMRC’s official guidance on Making Tax Digital for Income Tax, including who will be affected and how the system works, is available on
GOV.UK.

Does 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 Fulham Broadway and nearby areas such as Munster Village and Sands End, whether MTD applies will depend on income levels and individual circumstances. At CIGMA Accounting, we can help you confirm how the rules apply to you and whether any action is required.