Ready for the latest phase of MTD?

If you’re a sole trader or landlord this is important…

I’m sure everyone has heard of MTD for VAT but are you aware that MTD for Income Tax is coming?

• It’s going to affect landlords and sole traders with qualifying earnings over £50,000 from April 2026.

• Then landlords and sole traders with qualifying earnings over £30,000 will be mandated form April 2027, finally, those with earnings above £20,000 will follow in 2028.

So what does that mean? Under HMRC’s regulations, sole traders and landlords will need to mainatin digital records and use HMRC recognised software to manage their finances and updates them to HMRC.

The timing of submissions have changed also:
Currently it’s one annual submission which is filed by the 31st October or 31st January depending on whether it’s paper based or electronically, and paper records can be kept.

This will change to four quarterly submissions, one final declaration and these must be filed using MTD compatible software, digital records will also need to be maintained.

The great news is, we’re already on the ball here and ready for when it becomes mandated. Because we use Xero Accounting Software, it means we’re fully prepared to help and support you along the way. If you want to understand more about it, check out these resources from Xero