February 06, 2026
Article
The launch of Making Tax Digital for Income Tax (MTD-IT) is fast approaching and no doubt everyone has now heard or seen a publication from HMRC or software provider relating to the upcoming changes.
Following the submissions of all 2024/25 tax returns, by now all impacted individuals should be aware if they fall into the MTD IT filing requirements. If you are unsure, please do contact us.
The table below summarises who will be impacted and when.
What to do now if you meet the criteria for filing MTD-IT returns from 6 April 2026?
1. Don’t panic - we are here to guide you through every stage of the MTD journey, from initial set-up to submissions.
2. Consider your software choices. If you are already submitting VAT returns through MTD, you will already have an MTD-IT compliant software. The quarterly MTD-IT submissions will be a separate submission from your VAT return, however, will follow a similar process.
If you do not currently use a software, we recommend using Xero for sole trade businesses or Hammock for rental income. Please do get in touch if you would like assistance with setting up an account or require any software training.
3. Sign up for MTD-IT – If you meet the criteria you will need to sign up ahead of the start date. Again, this is something we can assist you with.
4. Link your software with your MTD-IT online account.
5. You are ready to go and will need to ensure quarterly submissions are made by the deadlines explained below.
Submission deadlines
The quarterly submission deadlines are one month and two days after the end of each tax quarter. This means the first submission deadline will be the 7th of August 2026 for the quarter 6th of April 2026 to 5th of July 2026. These deadlines align with the VAT return deadlines for anyone submitting quarterly VAT returns to March, June, September and December.
Paying your income tax
No changes are being made to how and when your income tax is paid. Payment deadlines will continue to be the 31st of January and the 31st of July each year.
If Albert Goodman currently submit your annual self-assessment tax return, we will continue to do this, the quarterly MTD-IT returns will not replace this requirement.
What if you no longer meet the income threshold?
If your combined sole trade and property gross income exceeded £50,000 for the 2024/25 tax year but drops below this in future years, you still need to submit quarterly returns under MTD-IT.
What if you no longer operate as a sole trader and have no property income?
If your gross income exceeded £50,000 in 2024/25, however you have since ceased operating as a sole trader you will not be required to file quarterly returns under MTD-IT. You will still need to inform HMRC of this change. The easiest way to do this is to sign up for MTD-IT and then remove yourself.
Please do get in touch if you have any questions or concerns regarding MTD-IT, we are here to help you.