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).