While the mandatory implementation of Making Tax Digital (MTD) for self-employed workers and landlords is still over a year away, the Autumn Budget 2024 expanded its scope.
Here’s a quick summary of what landlords and small business owners need to know for 2026.
Making Tax Digital timeline
Those expected to submit returns online for Income Tax Self-Assessment (ITSA), namely landlords and the self-employed, must adjust to the following implementation timeline:
- 6th April 2026 – if earning more than £50,000 for the 2024–2025 tax year
- 6th April 2027 – if earning between £30,000–£50,000 for the 2025–2026 tax year
- By the end of the current parliament – if earning between £20,000–£30,000 for the previous tax year
These earnings are based on gross income, not on net profit after the deduction of expenses.
By stating these mandation levels, the UK government seems fully committed to implementing MTD for ITSA from April 2026, with no further postponements.
Outstanding issues with MTD
One of the main concerns about MTD for ITSA is that testing has been relatively small scale, with a lack of compatible software until recently and significant voluntary sign-up exclusions.
For example, those unable to voluntarily use MTD so far include anyone:
- Paying the High Income Child Benefit Charge
- Claiming Marriage Allowance
- With income from a Trust or joint property ownership
HMRC has yet to confirm how MTD will work for those with jointly owned property, as it would be impractical for each owner to keep digital records and submit quarterly updates separately.
You can find Making Tax Digital guidance on the government website, or speak to our accountants in Barnsley if you need professional support to move to digital accounting.
The gbac team is just a phone call or email away, ready to assist you with digital financial services and effective tax management in compliance with HMRC.