Who will be subject to MTD for IT from 6 April 2026

by Aitch, posted in Income Tax

Taxpayers who are self-employed or receive rental income should check whether they will be subject to Making Tax Digital for Income Tax (MTD for IT) from next month. The new rules significantly change how affected individuals report their income to HMRC.

The first cohort subject to MTD for IT from 6 April 2026 are those whose qualifying income exceeded £50,000 in the 2024–25 tax year. This figure is important because HMRC is using the income declared on 2024–25 self-assessment tax returns to determine who must join MTD from April 2026. Anyone above this threshold will normally be required to keep digital records and submit information to HMRC using compatible software.

Qualifying income broadly refers to the total gross income from self-employment and rental income before expenses are deducted, also referred to as ‘turnover’. This can include income from multiple sources of self-employment and property income. However, all other types of income are not included when determining whether the threshold is met. For example, employment income taxed through PAYE, pension income, dividends and partnership income do not count towards the MTD income limit.

A second phase of the rollout will follow in April 2027, when MTD for Income Tax will extend to individuals with qualifying income between £30,000 and £50,000.

Source:HM Revenue & Customs | 09-03-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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