Making Tax Digital for Income Tax from April 2026

Making Tax Digital (MTD) for Income Tax is a reporting process set to be implemented by HMRC from April 2026. 

See our most up-to-date article: MTD, what landlords and sole traders need to know?

It will replace the current Self-Assessment Tax Return with quarterly reporting requirements and a year-end final declaration.

The quarterly updates will detail a taxpayer's income and expenses for the period. 

The first update for the 2026/27 tax year will cover the period from 6 April 2026 to 5 July 2026 and will be due by 7 August 2026. 

The year-end final declaration follows the same timeline as the existing self-assessment return and will be due by 31 January following the end of the tax year.  

A taxpayer will be required to submit quarterly updates unless you are “digitally excluded”. 

This will necessitate maintaining records and performing bookkeeping electronically. HMRC provide a list of digital bookkeeping software that works with Making Tax Digital for Income Tax to enable taxpayers to find one that works for them. 

Spring Statement 2025

In the Spring Statement it was confirmed that the Making Tax Digital (MTD) for income tax regime will also capture sole traders and landlords with income above £20,000 from April 2028, an acceleration in time of what had previously been expected. 

Further information

Our team at Bishop Fleming will be able to assist with Making Tax Digital and we invite you to reach out to your usual Bishop Fleming contact if you would like to discuss this further.