Making Tax Digital for Income Tax: Last chance to make sure you’re prepared
Making Tax Digital (MTD) for Income Tax will come into effect from 1 April 2026. If you fall within the qualifying income thresholds, you’ll need to ensure you’re fully prepared. Here’s what you need to know to stay compliant and avoid last‑minute issues.
16th March 2026
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Kim Mauger See profile
Do I need to be mandated into MTD?
If your qualifying income (gross income from self‑employment and property rental) exceeds the following thresholds, you will be mandated into MTD:
- £50,000 in 2024/25 – mandated from April 2026
- £30,000 in 2025/26 – mandated from April 2027
- £20,000 in 2026/27 – mandated from April 2028
Qualifying income includes your gross self‑employment and property rental income; most other income types, including partnership income, don’t count. HMRC assesses this using the figures from your last Self Assessment return.
Once mandated, you will not be able to exit MTD for Income Tax unless you remain below the threshold for three consecutive years.
How can I stay compliant?
You will need to make quarterly submissions (summary updates, not full tax returns) using MTD‑compliant software. All four in‑year submissions must be completed; otherwise, your year-end submission (tax return) cannot be filed with HMRC.
In addition, once mandated, you will no longer be able to use the HMRC website to file a tax return. If you currently submit your own tax returns, get in touch with Old Mill’s Small Business team to see how we can help.
How can Old Mill help with MTD compliance?
Our Small Business team offers several packages to provide support for both the implementation and ongoing compliance associated with MTD. If you’re interested in MTD support, get in touch.