The key dates and deadlines for HMRC’s MTD for IT roll out are:

• April 2025
  HMRC’s public testing phase opens
  

• April 2026
  Comes into effect for sole traders and landlords with qualifying income above £50,000
  

• April 2027
  Comes into effect for sole traders and landlords with qualifying income above £30,000
  

• April 2028
  Comes into effect for sole traders and landlords with qualifying income above £20,000
  

• Check HMRC website for latest information on when you need to start using MTD for IT

MTD for Income Tax brings benefits for your business.

Some of the benefits of MTD for Income Tax are:

• A clearer view of your finances

• Help with decision-making and planning

• Automation of routine tasks so less time spent on manual processes

Use the online tool to check if you need to use the MTD for IT service, please see the following website to check if you are eligible:- https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax

MTD for IT will require self-employed people and landlords to:

• Submit four quarterly updates

• Submit a final declaration by 31 January

• Keep digital records

• Use MTD-compatible software

Making Tax Digital for Income Tax (MTD for IT) starts in April 2026 for landlords earning over £50,000 a year from property income, or from property income and self-employment income combined.

Check here for Making Tax Digital for Landlords: Guide to MTD rules and deadlines

How the MTD for IT rules will affect landlords with jointly-owned property.

Easements for landlords with joint-owned properties

Landlords of jointly-owned properties can choose:

• Not to submit quarterly updates of expenses

• To keep less detailed digital records

Check out HMRC’s guidance on easements for landlords (in section 3, Review outcomes)

The sooner you get ready, the smoother MTD for IT will be for you.

By starting to use suitable software for record-keeping now, you will:

• Be well set up ahead of time (we’ll help)

• Have time to adjust to new ways of working

• See the benefits of going digital this tax year

• Be familiar with the software and be confident about what you need to do, before the MTD for IT deadline arrives
  

If you are sole traders or landlord with qualifying income above £50,000 you need to be ready by April 2026.

Make it easy on yourself ahead of the MTD for IT deadline for your business.

Prepare now in order to:

• Avoid the stress of rushing to meet the deadline

• Reduce the risk of penalties

• Ensure that you’re fully compliant with the new regulations

• L J Rose Accounting will undertake submission of four quarterly updates and submit a final declaration by 31 January, using your Xero plan of choice.

• Keeping your bank feed, income and outgoings up-to-date using tools within Xero will simplify your quarterly update requirements.

• Our fees for filing MTD for IT on your behalf will depend on your specific needs, including; bookkeeping requirements, Xero plan subscription, other accountancy services with us.

• Letters are being sent from HMRC advising a change to the way some need to report their income and expenses.

• If you receive this letter, follow the instructions in the letter and use the online tool to check if you need to use the MTD for IT service, please see the following website to check if you are eligible:- https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax

• L J Rose Accounting is providing MTD compatible software from £7+VAT per month, plus additional service fees, to submit MTD for IT quarterly updates and declaration.

• Our fees for filing MTD for IT on your behalf will depend on your specific needs, including; bookkeeping requirements, Xero plan subscription, other accountancy services with us.

HMRC have provided a website with more information about the changes to self-assessment, link provided below.

Here you can find published information on key dates, benefits, choosing software and more.

https://makingtaxdigital.campaign.gov.uk/how-making-tax-digital-works