Overview

• Making Tax Digital for Income Tax will require digital record-keeping and quarterly reporting for self-employed individuals and landlords earning over £50,000 starting April 6, 2026.
• Thresholds will expand to include incomes over £30,000 in 2027 and £20,000 in 2028, affecting an estimated 1.75 million taxpayers by then.
• HMRC has launched a testing programme to help taxpayers familiarize themselves with the system and access support ahead of mandatory compliance.
• Legislation to formalize exemptions and deferrals for groups such as those with a Power of Attorney or specific allowances is nearing completion.
• The initiative builds on the success of MTD for VAT, aiming to reduce errors, save time, and support economic growth under the UK’s Plan for Change.