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If you’re an individual property landlord or sole trader, it’s important to prepare for MTD for Income Tax. Starting in April 2026, MTD will apply if your “qualifying income” exceeds certain amounts: £50,000 in 2026/27, £30,000 in 2027/28, and £20,000 from 2028/29 onwards. This article provides a simple overview of how these new rules may affect you.
At Stan Lee Accountancy, we take pride in providing confident support for your income tax matters, including Making Tax Digital for Income Tax, self-assessment tax computations, and return submissions.
MTD for Income Tax is a new, mandatory system in the United Kingdom, effective from April 2026, which applies to self-employed individuals and property landlords. The initiative requires maintaining digital records, submitting quarterly returns, and filing a final declaration using compatible software. A points-based penalty system will be imposed for late submissions.
Individuals who are genuinely unable to use digital tools may be eligible for an exemption. To obtain an exemption from MTD obligations, you must apply and receive approval from HMRC.
The following are automatically exempt from MTD for Income Tax and do not need HMRC approval:
Personal representative of someone deceased
For each tax year, four returns are required as outlined below:
Alternatively, you may select reporting dates from the 6th of one month to the 5th of the next (e.g., 5 April to 5 July rather than 1 April to 30 June). However, the periods above are often preferred for the simplicity.
In addition, what information should be included in the quarterly returns? Your quarterly returns must provide comprehensive details regarding your income and expenditures, whether you are operating as a landlord, sole trader, or both.
Furthermore, is there any tax obligation on a quarterly basis? Under MTD for Income Tax, there is no requirement to make quarterly tax payments. The tax payment schedule remains unchanged; if you are not subject to payments on account, the payment is due only on 31 January. Otherwise, payments are required on both 31 January and 31 July.
The year-end final declaration will replace the existing annual self-assessment tax return, which is currently due by 31 January following the close of the tax year.
This declaration encompasses the following elements, and should reflect all sources of income:
Disclosure of additional income sources such as salary, dividends, interest, and others
Final Thoughts:
MTD for Income Tax is a new HMRC system, so it’s important to seek professional help to meet requirements and avoid penalties. Doing this on your own can be challenging unless you feel fully confident.
At Stan Lee Accountancy, we are ready to assist with MTD for Income Tax—from initial setup through quarterly returns and final declarations, plus general guidance.
Contact us today for a free, no-obligation consultation about MTD for Income Tax, and let’s explore how we can support your personal tax needs.
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