MTD for Income Tax: Key Changes Coming in 2026

Are you ready for the next phase of Making Tax Digital?

From April 2026, HMRC is rolling out the next stage of Making Tax Digital (MTD)—this time targeting individuals with self-employment and/or property income. Here’s what you need to know and how Debere is helping clients prepare:

What’s Changing in 2026?

1. MTD for Income Tax Self Assessment (ITSA) becomes mandatory from April 2026.
2. It applies to individuals with annual gross income over £50,000 from self-employment and/or property.
3. Those earning annual gross income between £30,000 and £50,000 will need to comply from April 2027.

Key Requirements

1. Maintain digital records of income and expenses using compatible software.
2. Submit quarterly updates to HMRC (instead of one annual tax return).
3. An End of Period Statement (EOPS) and a final declaration will replace the traditional Self Assessment tax return.

Who’s Affected?

1. Landlords
2. Sole traders
3. Individuals with multiple income sources that meet the income threshold

How débere Can Help

At débere, we’re already working with clients to:

1. Identify who will be impacted
2. Select and implement MTD-compliant software
3. Streamline digital bookkeeping processes
4. Provide training and ongoing support

Start Preparing Now

MTD might seem far off, but early preparation will reduce stress and ensure a smooth transition. If you're unsure how the rules apply to you—or just want peace of mind—our team is here to help.

Get in touch with your débere advisor today, or email admin@debere-ne.co.uk to start planning.