Making Tax Digital for Income Tax
HMRC continues to modernise the UK tax system through its Making Tax Digital (MTD) initiative. MTD for VAT was first rolled out in 2019 and became mandatory for all VAT-registered businesses in 2022.
The next stage, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), will launch in April 2026 for self-employed individuals and landlords with annual business or property income exceeding £50,000. The threshold will lower to £30,000 from April 2027 and £20,000 from April 2028.
Abbott & Brown is fully equipped to support this transition, helping private investors, landlords, and small businesses remain compliant with evolving HMRC requirements while maintaining efficient, digital accounting processes.
What does Making Tax Digital (MTD) mean?
MTD is a government-led initiative by HM Revenue & Customs to modernise the UK tax system. As per HMRC guidelines, affected businesses and landlords must keep digital records and submit updates to HMRC using MTD-compatible software. Our expertise can help you make the switch to a digital system seamlessly, without any interruptions.
How we help you stay compliant
From £55 a month
Supporting businesses to make the digital switch
To move to a fully digital tax system, you need the correct cloud-based accounting software along with expert accountant support. Our team follows a digital-first approach to ensure your bookkeeping and tax reporting are fully compliant with Making Tax Digital (MTD) requirements from the outset.
Over the next few years, MTD for Income Tax will be introduced in stages for self-employed individuals and landlords. From April 2026, those with income over £50,000 will be required to keep digital records and submit quarterly updates to HMRC using compatible software. The threshold will reduce to £30,000 in April 2027 and £20,000 in April 2028.
Preparing early will help you avoid disruption and reduce the risk of errors, penalties, and missed deadlines. With Abbott & Brown, your accounting and tax reporting can be fully digital, efficient, and easy to track throughout the year.