Making Tax Digital for Income Tax – Are you ready?
Making Tax Digital for Income Tax (MTD for ITSA) is now being introduced for landlords and sole traders in stages. If you receive rental or self-employment income, it's important to understand when MTD applies to you and what you need to do to be ready.
I can help you get your bookkeeping and digital records organised, choose suitable accounting software and keep your records up to date throughout the year.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax is HMRC's way of moving sole traders and landlords towards digital record keeping and quarterly reporting.
Those within MTD will need to:
- Keep digital records of their business and property income and expenses
- Use compatible software
- Send quarterly updates to HMRC
- Complete their tax return as normal at the end of the tax year
Quarterly updates are summaries of your income and expenses, they are not tax returns.
Digital record keeping
Keep your property income and expenses recorded digitally and organised throughout the year.
Compatible software
I can help you choose and set up suitable MTD-compatible accounting software for your bookkeeping needs.
Quarterly updates
Keep your records up to date throughout the year so your quarterly income and expense information is ready to be submitted through compatible software.
Who will need to comply?
MTD for Income Tax is being introduced in stages. The rules are based on your qualifying income from self-employment and property.
From 6 April 2026
You may need to use MTD for Income Tax if your qualifying income is more than £50,000.
From 6 April 2027
The threshold reduces to more than £30,000.
From 6 April 2028
The threshold is due to reduce further to more than £20,000.
Qualifying income is based on your income from self-employment and property before expenses are deducted.
How VHK Bookkeeping can help
At VHK Bookkeeping, I help landlords and sole traders prepare for Making Tax Digital by keeping their bookkeeping records accurate, organised and up to date.
Our Making Tax Digital support services
I can help you get your bookkeeping ready for Making Tax Digital and provide ongoing support to keep your digital records up to date.
Setting up digital systems
I can help you set up and organise your digital bookkeeping system.
Maintaining accurate records
Keeping your income and expenses accurately recorded and your bookkeeping up to date throughout the year.
Organising income and expenses
Helping you keep your income and expenses properly recorded and organised.
MTD preparation
Helping you understand what you need to do and making sure your bookkeeping is ready for quarterly reporting.
Ongoing bookkeeping support
Providing ongoing bookkeeping support to help keep your digital records organised and up to date.
Free bookkeeping health check
I offer a free bookkeeping health check to identify areas that may need attention as you prepare for Making Tax Digital.