What is Making Tax Digital
Guiding SME’s and owner managed businesses through transactions at every stage of the business lifecycle
Making Tax Digital for Income Tax
The way income tax self-assessment returns are submitted is changing and we’re here to help you prepare. Making Tax Digital (MTD) is part of the government’s plans to make it easier for individuals and businesses to get their tax right and stay on top of their affairs.
MTD requires individuals and businesses to:
MTD covers both Making Tax Digital for VAT and Making Tax Digital for Income Tax. Starting from April 2026, Making Tax Digital for Income Tax (MTD for IT) will impact sole traders, the self-employed and landlords with qualifying income of £50,000 or more. The HMRC digitalisation initiative is designed to make it easier for everyone to report their tax accurately and efficiently.
Our team is here to support those affected with selecting, implementing and setting up a compliant solution.
Key Dates and requirements
MTD for Income Tax will be introduced in three phases:
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
from April 2028, for those with qualifying income over £20,000
From April 2025:
Sole traders, the self-employed and landlords should begin preparing for MTD for Income Tax to allow enough time for migration, system setup, and testing to ensure compliance by the deadline.
- Voluntary sign-up for MTD for Income Tax is available ahead of the mandatory dates.
What will Year 1 look like?
6 April 2026:
MTD for Income Tax becomes mandated for sole traders, the self-employed and landlords with qualifying income of £50,000 or more.
Those affected should plan ahead now to ensure a smooth transition and sufficient time for setup and testing.
Quarterly filing deadlines:
The Benefits of Making Tax Digital
MTD does not change the amount of tax you owe or when you need to pay it, but it does offer significant advantages:
Penalties
MTD introduces a points-based penalty system:
For more information:
Digital Exclusions
Individuals can apply for an exemption from MTD for ITSA if they are digitally excluded. This includes people for whom using computers is not reasonable or practical due to age, disability, or location, as well as those who object to using computers on religious grounds.
Individuals who already have an exemption under MTD for VAT do not need to reapply for MTD for ITSA.
Learn more about applying for an exemption (GOV.UK)
How can we help with MTD?
At Acuity, we understand that this is not a change you asked for — but we’re here to make the process as smooth as possible and ensure you meet the new requirements with minimal disruption to your day-to-day operations.
With our expertise, industry insight, and hands-on experience from implementing MTD for VAT — along with our direct engagement with HMRC and software providers — we’ll make sure you have all the support you need.
Get in touch with your client manager for guidance on managing the change, or email us –MTD@acuityprofessional.com
Your Making Tax Digital Team
Our Making Tax Digital team are here to help you with any questions you have – get in touch.
Debbie Hargreaves
Amy Williams
Cara Allen
