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Making Tax Digital for Income Tax: How We’re Leading the Way

Making Tax Digital for Income Tax (MTD for IT) is HMRC’s initiative to move towards a fully digital tax system. Instead of submitting one annual Self Assessment return, individuals will now keep digital records and submit quarterly updates using approved software.
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What Is MTD for Income Tax?

MTD for IT requires individuals to:

  • Maintain digital records
  • Use MTD-compatible software
  • Submit quarterly updates
  • Submit a Final Declaration (replacing the traditional tax return)
This shift moves taxpayers from an annual process to regular digital reporting throughout the year.
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Who It Applies To

MTD for IT applies to:

  • Self-employed individuals
  • Landlords
  • Those with both self-employment and rental income combined
It applies to gross income before expenses, and for jointly owned property, each landlord only counts their share. Partnerships are not currently included.

Thresholds & Mandate Dates

We manage required annual submissions to Companies House and HMRC to ensure your organisation remains in good standing.

  • From 6 April 2026: Individuals with over £50,000 qualifying income must enter MTD for IT.
  • From 6 April 2027: Individuals with over £30,000 will also be mandated to comply.
  • From 6 April 2028: Individuals with over £20,000 will also be mandated to comply.
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Our Practice’s MTD Journey

While many firms are just beginning to prepare, we’ve been leading the way for years, working directly with HMRC and testing software. Key milestones include:

First in the UK to File MTD for IT via IRIS

We became the first accountancy practice in the country set up to file MTD for Income Tax using the IRIS Accountancy Suite. This positioned us at the forefront of digital tax transformation.

Clients in the 2024/25 MTD Pilot

We already have clients reporting through the MTD for IT pilot, giving us:
  • Real-world experience
  • Tried-and-tested processes
  • How software like IRIS supports smooth digital reporting
These sessions have highlighted us as leaders in MTD readiness.

Speaking at Major Industry Events

The practice has spoken at Accountex Manchester and Accountex London, showcasing:
  • Our MTD experience
  • Practical lessons from early adoption
  • How software like IRIS supports smooth digital reporting

Working Directly With HMRC

We have participated in HMRC-led peer groups, sharing insights and helping shape guidance. Our team has also attended parliamentary roundtable discussions with senior HMRC leaders, giving us first-hand insight into how MTD is being developed.

What MTD Means in Practice

Once mandated, individuals will:

  • Keep all tax records digitally
  • Send quarterly submissions using approved software
  • Complete a Final Declaration each year
This reduces the year-end rush and encourages more accurate, up-to-date record-keeping.

Preparing for MTD for Income Tax

If your income is approaching £20,000, £30,000 or £50,000, now is the best time to prepare. We recommend:

  • 1. Reviewing your expected income for upcoming tax years
  • 2. Moving to MTD-compatible software as soon as possible
  • 3. Considering early onboarding or pilot participation
  • 4. Allowing us to support your digital setup and quarterly workflow
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What This Means for Our Clients

By embracing MTD early, our clients benefit from:

  • A smoother, stress-free transition
  • Expert guidance from our direct HMRC involvement
  • Early access to compliant processes and workflows
  • Confidence that they will be fully ready well before the mandate

Stay compliant with confidence

MTD for Income Tax is transforming how millions of individuals report their tax. With mandates starting in 2026 and 2027, preparation is essential.

Our practice has been at the forefront of this change, helping shape the journey through direct HMRC collaboration, speaking engagements, and real pilot submissions. We’re not just ready for MTD – we’re leading it.