Making Tax Digital for income tax is a key part of the Government strategy.

Making Tax Digital for income tax (MTD IT) will change how some taxpayers maintain their accounting and tax records and how they transact and communicate with HMRC.

It will be phased in from April 2026 for many sole traders and landlords. MTD VAT has applied to all VAT-registered businesses since April 2022. 

The start date for MTD IT is determined by the person’s gross income from self-employment and property.

If this is more than £50,000 (based on the tax return for 2024/25), they must maintain digital accounting records and submit quarterly updates to HMRC from April 2026.

If their gross income is more than £30,000, they must comply from April 2027. Other taxpayers may be brought within scope at a later date. 

This is covered in various webinars that you can view on the Government’s website HERE.

The series that aims to give an easily digested description of different aspects of tax that can be readily understood by anyone who is not an expert in that particular field.

Here at Hollies Bookkeeping Services in Shropshire, we have already begun working on this and are working through implementing it with all our clients.

If you are self-employed or own a property, we can help take the pressure off by ensuring that all aspects of your bookkeeping and accounting are digitised and ready for the change from next April.

If you are confused about these changes or would like any other advice relating your bookkeeping or accounts, please get in touch with us here at The Hollies Bookkeeping in Shropshire on 01743 790086, email info@holliesbookkeeping.co.uk or visit

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