MTD for Income Tax marks a pivotal digital transformation in UK taxation—mandating digital record-keeping and quarterly reporting, underpinned by stricter penalties for non-compliance. Phased in from April 2026, the system will gradually include more taxpayers through to 2028.
What’s Happening?
- Mandatory digital record-keeping and quarterly reporting
From 6 April 2026, sole traders and landlords with gross income over £50,000 (before expenses or allowances) must keep digital records and send quarterly updates to HMRC using MTD-compatible software
- Phased income thresholds
The requirement extends to those with income over £30,000 from 6 April 2027, and over £20,000 by April 2028
- More frequent, more real-time reporting
Rather than a single self-assessment return, clients will send four quarterly updates per tax year, with a final declaration due by 31 January after the tax year ends
Why it matters?
Digital record-keeping enables smoother workflows, reduces end-of-year panic, improves accuracy, and gives clients a clearer view of their financial picture throughout the year.
For MTD users from April 2026, staying compliant will be even more crucial.
How can we help?
- We’ll evaluate your 2024–25 and 2025–26 qualifying income to determine if, when, and how MTD applies to you
- We’ll help you choose and implement MTD-compatible software tailored to your needs, ensuring your record-keeping is accurate, efficient, and compliant
- We’ll prepare and submit your quarterly income and expense updates on your behalf, ensuring timely compliance and reducing admin burden
- Managing your final declaration—incorporating adjustments, allowances, and reliefs—so that your annual tax position is accurate and optimised
At Kenneth Morris Chartered Accountants, we’re here to make this transition seamless. From early registration to software setup, quarterly submissions, final declarations, and advisory support—we offer comprehensive MTD ITSA solutions tailored to your needs.
Let’s talk about getting you set up for MTD success.