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Making Tax Digital (MTD) has transformed tax management for many businesses. With significant updates planned for 2026 which will expand the scope to include Income Tax Self-Assessment (ITSA), this guide will help both accountants and businesses to get ready.
Read time: 4 mins Added: 10/04/25
You need to comply now if one of the following applies:
Exemptions from MTD
Some companies and individuals may qualify for exemptions from MTD due to specific reasons such as:
Read the GOV.UK guidance on exemptions from MTD to understand whether they apply to you.
MTD is expanding from VAT to include Income Tax Self-Assessment (ITSA).
From April 2026, landlords or self-employed workers with annual income over £50,000 must comply with MTD for Income Tax. From April 2027, this will expand to include those with incomes over £30,000.
A new points-based penalty system will soon take effect for late submissions and payments. Take time to familiarise yourself with the upcoming deadlines so you can avoid unnecessary fines and interest charges.
For further guidance, you can check out the GOV.UK step-by-step guidance on Making Tax Digital for Income as an agent and the HMRC Agent toolkit (PDF, 1.3KB).
For further guidance, read the GOV.UK step-by-step guide for individuals on Making Tax Digital for Income.
Now’s the perfect time to get yourself and your business ready for the changes to MTD. First, understand the new rules. Next, choose the right MTD compliant software. Finally make sure you keep your digital records organised.
Accountants - support and guide your clients through these changes. And businesses - simplify your processes and stay updated on what's coming next. Take these steps today to help set your business up for success.