MTD for Income Tax: understanding the new rules and how to prepare

The UK’s shift to Making Tax Digital for Income Tax is no longer a distant headline; it’s a fixed deadline that will change how affected people and landlords keep records, file, and plan. We bring clarity to this complex rollout, explaining what MTD requires, who’s in scope, and how to avoid the penalties that will catch late filers off guard.

We walk through the timeline: mandatory adoption for those with combined self‑employment and UK property income above £50,000 from April 2026, dropping to £30,000 in April 2027, with a proposal to reach £20,000 from 2028.

We break down the fixed quarter dates, the end‑of‑period statement that replaces the annual return, and why “turnover, not profit” is the threshold test. For sports and entertainment professionals with multiple income strands— e.g. gigs, endorsements, image rights, and rentals—these rules can bite sooner than expected.

There are some exemptions, and we decode the current list, including some automatic cases and others that require application, plus temporary relief for those using residence and remittance basis pages and recipients of trust income until at least April 2027.

We tackle the myths, for example that spreadsheets will be simple (bridging can work, but often adds friction and risk) and then we get practical: how to pick HMRC‑compatible software, set up digital records, organise receipts, and build a repeatable quarterly workflow that keeps you compliant without derailing your day job.

If your combined income may cross the threshold, now is the moment to take action. We can help you select tools, set them up correctly and ensure you’re meeting your filing obligations.