Home / Business / Making Tax Digital for Income Tax – Are you ready for MTD?

Making Tax Digital for Income Tax – Are you ready for MTD?

29 April 2025

We are now under a year away from when sole-traders and landlords will be subject to the new ‘Making Tax Digital’ reporting regime in the latest attempt by HMRC to improve accuracies and ensure the correct amount of tax is being collected.

Who will be subject to the new rules?

From 6^th April 2026, sole-traders and/or landlords with annual business/rental income over £50,000 will be required to register and file quarterly income and expense reports to HMRC. From 6^th April 2027, this threshold will drop to £30,000 and to £20,000 in April 2028.

It is important to note that the threshold is based on gross income and not profits for the year.

Whether or not an individual is caught by these rules will be based on the reported income for the 2024/25 tax year meaning if your annual combined income from self-employment or property rental was over £50,000 to 5^th April 2025, you will be required to comply with these MTD rules.

What do I need to do?

From 6^th April 2026, individuals who fall within the MTD regime will be required to keep digital records for income and expenditure and submit quarterly returns to HMRC reporting their self-employment or property income. These will need to be reported through MTD compatible software.

Any allowances or reliefs claimed can be claimed through the end of year self-assessment tax return in the normal way. This will mean that there will be five reporting events for individuals in the financial year.

The payment deadlines for tax in relation to self-employment/rental profits remain unchanged under the MTD regime.

If you have any questions regarding how this may affect you or for any advice regarding making the transition to digital tax reporting, please do not hesitate to contact us.

Contact Our Friendly Legal Experts Today

For general enquiries or to discuss more specific needs in personal or commercial law please get in touch with a friendly member of our team today.

Latest News

29th April 2025

Making Tax Digital for Income Tax – Are you ready for MTD?

14th March 2025

All You Need to Know About Contentious Probate

mediation professional and client shaking hands

4th March 2025

Myth busting Mediation - What is it, and how can it help?

personal injury solicitor reviewing claim and advising client

26th February 2025

Your Quick Guide to End of Year Tax Planning

26th February 2025

Court Claims & the Limitation Period

14th February 2025

How the Court of Protection Works and the Role of a Deputy

Our Offices

Chichester Office:
52 North Street,
Chichester,
West Sussex, PO19 1NQ 01243 786 668

Chichester Office:
61a North Street,
Chichester,
West Sussex, PO19 1NB 01243 786 668

By Appointment Only:
Parallel House,
32 London Road,
Guildford, Surrey, GU1 2AB 01483 617 615

By Appointment Only:
1 Hinde Street,
Marylebone,
London, W1U 2AY 0203 841 9891

Also at 44 North St, Chichester, PO19 1NF Contact Us

Author: Alexander Beck

Published on: 29 April 2025

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.

Necessary

Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

Cookie	Duration	Description
apbct_headless	never	Cleantalk set this cookie to detect spam and improve the website's security.
apbct_page_hits	never	CleanTalk sets this cookie to prevent spam on comments and forms and act as a complete anti-spam solution and firewall for the site.
apbct_pixel_url	never	Clean Talk sets this cookie to make WordPress anti-spam cookies, e.g., spam on forms and comments.
apbct_urls	never	CleanTalk Spam Protect sets this cookie to prevent spam on our comments and forms and acts as a complete anti-spam solution and firewall for this site.
apbct_visible_fields	never	CleanTalk sets this cookie to prevent spam on the site's comments/forms, and to act as a complete anti-spam solution and firewall for the site.
cookielawinfo-checkbox-advertisement	1 year	Set by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Advertisement" category.
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
CookieLawInfoConsent	1 year	CookieYes sets this cookie to record the default button state of the corresponding category and the status of CCPA. It works only in coordination with the primary cookie.
ct_has_scrolled	never	CleanTalk sets this cookie to store dynamic variables from the browser.
ct_pointer_data	never	CleanTalk sets this cookie to prevent spam on the site's comments/forms, and to act as a complete anti-spam solution and firewall for the site.
ct_timezone	never	CleanTalk–Used to prevent spam on our comments and forms and acts as a complete anti-spam solution and firewall for this site.
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

Cookie	Duration	Description
_dc_gtm_UA-*	1 minute	Google Analytics sets this cookie to load the Google Analytics script tag.
_hjAbsoluteSessionInProgress	1 hour	Hotjar sets this cookie to detect a user's first pageview session, which is a True/False flag set by the cookie.
ct_checked_emails	never	Clean Talk sets this cookie to prevent spam on the site's comments or forms.
ct_checkjs	never	Clean Talk sets this cookie to prevent spam on the site's comments or forms.
ct_fkp_timestamp	never	Clean Talk sets this cookie to prevent spam on the site's comments or forms.
ct_ps_timestamp	never	Clean Talk sets this cookie to prevent spam on the site's comments or forms.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

Cookie	Duration	Description
_ga	1 year 1 month 4 days	Google Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors.
_ga_*	1 year 1 month 4 days	Google Analytics sets this cookie to store and count page views.
_gid	1 day	Google Analytics sets this cookie to store information on how visitors use a website while also creating an analytics report of the website's performance. Some of the collected data includes the number of visitors, their source, and the pages they visit anonymously.
_hjFirstSeen	1 hour	Hotjar sets this cookie to identify a new user’s first session. It stores the true/false value, indicating whether it was the first time Hotjar saw this user.
_hjSession_*	1 hour	Hotjar sets this cookie to ensure data from subsequent visits to the same site is attributed to the same user ID, which persists in the Hotjar User ID, which is unique to that site.
_hjSessionUser_*	1 year	Hotjar sets this cookie to ensure data from subsequent visits to the same site is attributed to the same user ID, which persists in the Hotjar User ID, which is unique to that site.
_hjTLDTest	session	To determine the most generic cookie path that has to be used instead of the page hostname, Hotjar sets the _hjTLDTest cookie to store different URL substring alternatives until it fails.
ct_screen_info	never	CleanTalk sets this cookie to complete an anti-spam solution and firewall for the website, preventing spam from appearing in comments and forms.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

Cookie	Duration	Description
_hjIncludedInSessionSample_466473	1 hour	Description is currently not available.