| Important Note: The AoR are unable offer financial guidance. We can support our members by informing and sign-posting to the relevant information and guiding them to further support. |
What is Making Tax Digital (MDT)? Making Tax Digital (MDT) is a Government initiative in the UK aimed at modernising the tax system for sole traders and landlords. It requires individuals to keep digital records and submit tax information online using approved software. They are introducing this change in phases depending on your income bracket. For sole traders and landlords with a qualifying income: If you earned £50,000 for the 2024 to 2025 tax year the MDT start date is 6th April 2026 If you earned £30,000 for the 2025 to 2026 tax year the MDT start date is 6th April 2027 If you earned £20,000 for the 2026 to 2027 tax year the MDT start date is 6th April 2028 Business partnerships will also need to use Making Tax Digital for Income Tax in the future. HMRC will set out the timeline for this at some point. |
USEFUL LINKS
Making Tax Digital for Income Tax for sole traders and landlords: step by step
HMRC videos and webinars for Making Tax Digital for Income Tax
Choose the right software for Making Tax Digital for Income Tax
