Making Tax Digital for Income Tax
Making Tax Digital for Income Tax
The next phase of Making Tax Digital for Income Tax Self-Assessment is now locked into the Government’s timetable.
HMRC is already writing to taxpayers who, based on the 2023-24 returns, look set to cross the respective thresholds, so many landlords and sole traders will soon have official letters from them. Under MTD you must keep digital records and send a software generated update every quarter, with a single “Final Declaration” by the following 31 January. A new points-based penalty regime (£200 at four missed deadlines) and higher late payment charges (3% after 15 days, rising quickly thereafter) will apply from the moment you enter MTD. Getting ahead now will spare you stress, reduce errors, and help budget for tax.
Who must join and when?
| Start Date | Who must join? | Income tested on return for… |
| 6 Apr 2026 | Landlords and sole traders with over £50,000 gross income. | 2024-25 |
| 6 Apr 2027 | Landlords and sole traders £30-50,000 gross income. | 2025-26 |
| 6 Apr 2028 | Landlords & sole-traders £20-30,000 gross income. |
2026-27 |
If your income is below the threshold, you may join voluntarily and gain access to HMRC’s dedicated pilot support team.
What will you have to do differently?
Digital record-keeping
You must use HMRC-recognised software or bridging tools that can create and send the required data. The latest approved list is on GOV.UK and is growing all the time.
Quarterly updates
Updates cover standard tax-year quarters (6 Apr–5 Jul, etc.) and must be filed within one month of quarter-end.
End of year Final Declaration
This combines your quarterly data with any other income (interest, dividends, employment) and crystallises the tax bill.
How can we help?
Tailored readiness review
We will analyse your tax return to confirm whether and when you must join MTD, factoring in basis period reform rules for sole traders with non-31 March year ends.
Quarterly filing service
Email us your records and we will:
- reconcile transactions monthly;
- submit quarterly updates;
- flag your rolling profit and estimated tax so there are no surprises come 31 January.
Digital recordkeeping best practice
We help you move to real time bank feeds, digital receipt capture and secure cloud storage – minimising manual input and audit risk.
Exemptions and appeals
If you believe digital reporting is not reasonably practicable (for example, due to age, disability, or remote location), we can apply for a formal MTD exemption on your behalf.
Immediate next steps for clients
- Open every HMRC letter and share it with us promptly;
- Book a free 30-minute MTD call via Tax@charter-house.net or 020 8863 4566.
- Start digital recordkeeping early; voluntary sign up is open now and early adopters get dedicated HMRC support.