HMRC to write to individuals who may be within Making Tax Digital
Making Tax Digital (MTD) for Income Tax will be phased in from April 2026 for individuals with self-employment and/or property income. An individual must comply with MTD for Income Tax, based on turnover from their 2024/25 income tax return:
- from 6 April 2026, where their annual turnover exceeds £50,000.
- from 6 April 2027, where their annual turnover exceeds £30,000.
HMRC has identified taxpayers who may need to comply with MTD for Income Tax from April 2026 and, from April 2025, will begin to inform them of the possible requirement. HMRC’s provisional assessment is based on information from 2022/23 Self Assessment returns.
Registration for MTD for Income Tax is not automatic and impacted taxpayers will need to sign up – registration is already open for 2024/25 onwards and can also be done with the assistance of an agent. From April 2025, agents can register individuals either 2025/26 onwards or from 2026/27 onwards.
For our existing clients, DSG’s tax team will be contacting those who we expect to come within MTD for Income Tax about next steps in due course. However, if you have been contacted by HMRC and are not sure if you should be registering, or you would like assistance with registration or any other related matter, we will be pleased to guide you through the requirements – please get in touch.