MTD Income Tax

You’ll need to maintain digital records of all your business income and expenses. This includes invoices, receipts, bank transactions, and any other financial documents relevant to your business or rental income.

Yes, you can make corrections in your next quarterly update or during your final year-end submission. This ensures that any errors are adjusted before your final tax position is confirmed.

Under MTD for Income Tax, the traditional Self-Assessment tax return will be replaced by a final declaration submitted after your quarterly updates. This final step confirms your total income and tax liability for the year.

MTD for Income Tax will be introduced in phases:

• From April 2026 for individuals earning over £50,000
• From April 2027 for those earning over £30,000
• From April 2028 for those earning over £20,000

MTD for Income Tax applies to individuals with self-employment or property income. If you’re a company director earning only through PAYE, it won’t apply. However, if you also have additional income (e.g. rental or freelance), you may need to comply with the company.

Yes, you can submit your own quarterly updates using HMRC-approved MTD software. However, many businesses prefer to work with an accountant to ensure accuracy, avoid errors and save time.

Yes, your accountant can handle the entire process, from maintaining records and preparing quarterly updates to submitting them to HMRC and completing your final declaration.