MTD IT Deadlines: What you need to prepare for

HMRC’s Making Tax Digital for Income Tax (MTD IT) initiative will fundamentally change how self-employed professionals and property owners manage their tax obligations, moving from annual submissions to regular digital updates. 

Understanding MTD IT  

This government-led transformation targets self-employed professionals, sole proprietors and property landlords. The revised framework mandates electronic record-keeping and quarterly submissions via approved software platforms, replacing the conventional once-yearly filing approach. 

When will MTD IT apply to your business?  

The MTD IT rollout follows a stepped implementation based on annual qualifying income: 

• £50,000+ threshold (effective April 2026)  

• £30,000+ threshold (effective April 2027)    

• £20,000+ threshold (effective April 2028) 

Available exemptions 

Certain circumstances may qualify for exemption from MTD IT requirements. HMRC recognises situations where digital compliance may be unreasonable or impractical:    

• Advanced age considerations    

• Disability-related barriers      

• Remote location with inadequate digital infrastructure        

• Religious objections to computer usage    

• Other legitimate circumstances preventing digital adoption    

Exemption applications must be submitted directly to HMRC for individual assessment and approval.  

Getting ready for MTD IT  

Transitioning from annual to quarterly submissions demands thorough preparation: 

1. Implement compatible technology 

Ensure your accounting systems support digital submissions and quarterly reporting capabilities that integrate directly with HMRC platforms. 

2. Master new procedures  

Develop understanding of quarterly submission processes and real-time tax liability monitoring to maintain ongoing compliance throughout the year. 

3. Staff development  

If you employ bookkeeping staff, provide comprehensive training on digital record-keeping practices and new reporting protocols. 

Consequences of non-compliance   

Missing MTD IT requirements could result in HMRC penalties, making early preparation crucial for avoiding potential issues. 

Support through the transition 

Professional advisors can evaluate your specific requirements, identify suitable software solutions, manage your quarterly submissions and monitor regulatory developments to maintain continuous compliance with evolving requirements. 

Contact us today to stay compliant with HMRC’s digital shift.