Making Tax Digital

Who is Affected?

You will be affected if you are:

• A sole trader or landlord, and
• Your total business or property income exceeds £30,000 per year.

When is it Happening?

The rollout will happen in two stages:

• From April 2026: If your income is over £50,000.
• From April 2027: If your income is between £30,000 and £50,000.

Businesses earning below £30,000 will not be required to comply yet but may join voluntarily.

What Will Change?

You will be required to:

• Keep digital records of your business and/or property income.
• Use MTD-compatible software to send quarterly updates to HMRC.
• Submit your annual Income Tax Self-Assessment return digitally through the software.

These updates will replace the traditional once-a-year tax return process.

Why is This Happening?

The goal of MTD is to:

• Help individuals get their taxes right the first time.
• Reduce errors and the tax gap (currently around £5 billion for self-employed taxpayers).
• Increase efficiency and productivity through digital tools.

Exemptions

If you are already exempt from other digital HMRC obligations (like MTD for VAT), or you cannot reasonably use digital tools due to age, disability, or remoteness, you can apply for an exemption.

Need Help Preparing? If you’re unsure about MTD ITSA and the next steps, Azoth are here to help. We offer a comprehensive service that will help remove the fog surrounding this huge change.

Complete the form below and our team will be in touch...