Before the Autumn Budget, there was optimism that the new Labour Government might postpone the implementation of Making Tax Digital (MTD) for Income Tax. However, those hopes were dashed on Budget day when the government confirmed the previously announced timelines. Additionally, it was revealed that individuals earning income from trading or property over £20,000 will be required to comply with MTD in the future. The mandate timelines are as follows:

  • April 2026: MTD for Income Tax will be mandatory for landlords and self-employed individuals with a turnover exceeding £50,000.
  • April 2027: MTD for Income Tax will extend to landlords and self-employed individuals with a turnover over £30,000.
  • Later date (TBC): MTD for Income Tax will be required for landlords and self-employed individuals with a turnover over £20,000.

To comply with MTD for Income Tax, businesses will need to maintain records using compatible software and submit their results to HMRC on a quarterly basis.