With just over a year until Making Tax Digital for Income Tax (MTD for IT) comes into effect, now’s the time to check whether your business will need to comply from 6 April 2026.

If you’re a sole trader or run an unincorporated property business, and your qualifying income (generally, turnover from your business or property rental) is £50,000 or more in the 2024/25 tax year, you’ll be required to follow the new rules from April 2026.

Since your 2024/25 income won’t be confirmed until you complete your accounts or tax return, your 2023/24 self-assessment return (which you recently submitted) can give you a good idea. If your income was at or above £50,000—or close to it and expected to rise—you’re likely to be included in MTD for IT.

HMRC will use 2023/24 tax returns to determine who needs to comply. If you’re affected, you’ll receive a letter in the coming months explaining the next steps.

MTD for IT requires businesses to keep detailed digital records in compatible software and submit quarterly reports to HMRC. This might feel like a big change, but it could also make managing your finances easier.

If you’d like support in understanding the new rules, choosing software, or setting up the right systems for your business, let us know—we’re here to help.