Making Tax Digital

Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC.  From 6 April 2026, sole traders and landlords must use it if their annual income from self-employment and property is over £50,000.   The threshold will reduce to £30,000 from April 2027, and £20,000 from April 2028.

You or your agent, if you have one, will need to use software that works with Making Tax Digital for Income Tax to: 

• create, store and correct digital records of your self-employment and property income and expenses  
• send your quarterly updates to HMRC  
• submit your tax return and pay tax due by 31 January the following year

At Hazells, we are getting ready to provide you with the information you will need to submit your returns. If your total income, including property and other income, for the 2026-27 tax year is expected to exceed £50,000, or you have received communication from HMRC that you will be subject to MTD ITSA, please let us know so that we can make sure we have all we need to produce your reports.  You will be responsible for submitting the information to HMRC and ensuring its accuracy.

Please get in touch on 01284 702626 if you think you will need our quarterly report service.