In this week’s Q&A, Ewan Edwards, VIP tax adviser at Croner-i, explains the reporting obligations for taxpayers required to report under Making Tax Digital (MTD) for Income Tax from 2026
The starting date of Making Tax Digital (MTD) for Income Tax is less than a year away and with its additional administration and cost for the taxpayer, it is the single biggest change to the taxpayers’ reporting obligations since the introduction of self-assessment. Preparation is key.
Who is included?
MTD for Income Tax will become mandatory for sole traders and landlords in phases starting from 6 April 2026.
The starting date is dependent on the individual’s gross income before expenses are deducted and is mandatory in phases:
• From 6 April 2026: gross income threshold more than £50,000;
• From 6 April 2027: more than £30,000;
• From 6 April 2028: more than £20,000.
The threshold test applies to the combined gross income of an individual’s trade(s) and property income, including overseas property income.
