MTD for self assassment

All self employed and landlords with income over £20,000 will have to file quarterly returns under Making Tax Digital for Income Tax from 2028

The government is also looking at extend MTD to those with income less than £20,000, which it wants to pull into the system, forcing them to report quarterly and buy software specifically for the purpose.

MTD for Income Tax will begin in April 2026 for sole traders and landlords, but only those that have an income of over £50,000. This will be extended to those earning over £30,000 in 2027, then reduced to £20,000 in 2028. They will have to file quarterly and do a year end tax return through the system.

MTD requires affected taxpayers to file four times a year using the software and also file their annual tax return through software, which HMRC says will ‘improve the customer journey’. There will be legislation for this introduced before MTD for income tax begins in 2026.