From 6 April 2026
Over £50,000
Qualifying income on the 2024–25 return
Guide and accountancy support
Making Tax Digital for Income Tax
For sole traders and landlords, the way income and expenses are reported to HMRC is changing. Find out when the rules apply, what you need to do and how MLE Accounting can look after the process for you.
Ask the team about MTD →1. Check your position
Who needs to use MTD for Income Tax?
MTD for Income Tax applies to individuals with qualifying income from self-employment or property. The threshold is based on gross qualifying income before expenses, not profit. The figures below relate to the relevant earlier Self Assessment tax return.
From 6 April 2027
Over £30,000
Qualifying income on the 2025–26 return
From 6 April 2028
Over £20,000
Qualifying income on the 2026–27 return
These rules have exceptions and exemptions. If you have both self-employment and property income, the qualifying amounts are generally combined. MLE Accounting can help you check your circumstances.
2. Understand the requirements
What will you actually need to do?
Keep digital records
Use software that works with MTD to record your relevant income and expenses.
Send quarterly updates
Submit summaries of your income and expenses to HMRC during the year.
Complete your annual return
Continue to submit one annual Income Tax return, normally by 31 January after the tax year.
Quarterly updates are not tax returns
They are summaries of the digital records. They do not replace the annual Income Tax return or mean that you submit four full tax returns.
You can use an accountant
You do not have to manage the entire process alone. An appointed agent can help with records, software, updates and the annual return.
3. Full accountancy support
How MLE Accounting can help
From your first MTD questions to the final annual return, MLE Accounting can provide an ongoing service, tailored to your needs.
Check eligibility and get started
Review qualifying income, relevant deadlines and any HMRC registration or agent authorisation steps.
Choose and set up software
Help choose and set up compatible software, including QuickBooks as MLE Accounting’s preferred bookkeeping platform, subject to the relevant MTD requirements.
Bookkeeping support
Maintain or review the information needed for accurate quarterly reporting.
Quarterly HMRC updates
Prepare and submit summaries through compatible software, under an agreed engagement.
Year-end checks and adjustments
Review records and account for any relevant year-end changes.
Annual Income Tax return
Prepare and submit the year-end tax return, with advice on the resulting position.
A different set of responsibilities
What about limited companies?
Limited companies still have annual filing duties
MTD for Income Tax does not replace a limited company's obligations. Limited companies generally need to prepare and file annual accounts with Companies House and submit a Company Tax Return to HMRC. MTD for VAT can apply separately if the company is VAT registered.
MLE Accounting also provides company accounts and tax services. We'll cover these in more detail on the planned Services page. For now, see the services overview on our homepage.
Questions clients ask
MTD explained, without the jargon
Do I need MTD if my business makes a profit below the threshold?
Possibly. The test is based on qualifying gross income from self-employment and property before expenses, not profit.
I rent out property and run a small business. Is my income combined?
Qualifying income from those sources is generally added together when checking the threshold. Other types of income may be treated differently.
Will I still need an annual tax return?
Yes. You still submit one annual Income Tax return, normally due by 31 January after the end of the tax year.
Can MLE Accounting handle quarterly updates for me?
That is part of the proposed full MTD support service, subject to agreeing an engagement and the software arrangements.
I'm a director of a limited company. Does MTD for Income Tax apply to me?
A limited company is not brought into MTD for Income Tax simply because it is incorporated. However, an individual director who separately has qualifying self-employment or property income may be personally affected. The company still has its own annual accounts and Corporation Tax obligations.
What if I cannot use digital software?
Some individuals can qualify for an exemption. We can discuss your circumstances and check the appropriate HMRC guidance.
Email-only enquiries
Need help with Making Tax Digital?
Briefly describe your situation and MLE Accounting can reply by email. See also our quarterly submission pricing.