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Making Tax Digital (for Income Tax) is a part of the UK Government’s Tax Administration Strategy. When introduced, the aim is to help reduce the UK’s ‘tax gap’.

Qualifying businesses and individuals will be required to:

  • Keep digital records of business income and expenses
  • Use Making Tax Digital compatible software, and
  • Submit updates quarterly

Starting from 06 April 2026, sole traders and landlords who earn income from self-employment or property will have to sign up unless:

  • Qualifying income is £30,000 or less (before expenses or taxes are deducted)
  • They are exempt from Making Tax Digital for Income Tax (MTD ITSA)

Those with a qualifying income of:

  • More than £50,000 need to start using MTD ITSA from 06 April 2026
  • More than £30,000 need to start using MTD ITSA from 06 April 2027

HMRC has recently updated some guidance which ICB wants to bring to your attention:

For Bookkeepers

Useful guidance for you and your clients and sensible updates. 

Don’t forget that if you are acting as an agent, the registration process for signing up a client is different.  Plus, you will need an Agent Services Account (which is not the same as the HMRC online services for agents account).

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