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📢 What Is MTD for Income Tax – And What Does It Mean for You?

  • leannehatch40
  • 1 day ago
  • 2 min read

Making Tax Digital (MTD) is HMRC’s push to modernise the UK tax system, making it easier for individuals and businesses to get their tax right. If you’re self-employed or a landlord, big changes are on the horizon – and now is the time to get ready.


Here’s what you need to know.

🔍 What Is MTD for Income Tax?

MTD for Income Tax Self Assessment (MTD for ITSA) will require individuals to keep digital records and send quarterly updates to HMRC using approved software.

It replaces the traditional Self Assessment tax return system with a more frequent and digital process – helping reduce errors and improve accuracy.

🗓️ When Does It Start?

  • April 2026 – MTD will apply to self-employed individuals and landlords with gross income over £50,000.

  • April 2027 – Those with income over £30,000 will be included.

If your total business and/or property income falls below £30,000, you won’t be required to join MTD just yet – but that may change in future phases.

💼 What Will You Need to Do?

To comply with MTD for ITSA, you’ll need to:

  1. Keep digital records of income and expenses

  2. Submit quarterly updates to HMRC using MTD-compatible software (like Xero)

  3. Submit an End of Period Statement (EOPS) and a Final Declaration at the end of the tax year

This means no more waiting until the deadline to deal with your tax return – and no more paper records or spreadsheets alone.

🤔 How Does This Affect You?

If you’re currently filing your tax return once a year, this change might feel like a big shift. But with the right software and support, it can actually save you time, reduce mistakes, and give you a clearer picture of your finances throughout the year.

At LMH Accounts Ltd, we’re already supporting clients with MTD-ready systems like Xero, Hubdoc, and Datamolino – taking the stress out of the digital transition.

✅ Get MTD-Ready with LMH Accounts

Whether you're a landlord, a sole trader, or running a growing business, we can help you:

  • Choose and set up the right software

  • Maintain accurate digital records

  • Submit compliant updates to HMRC

  • Understand your numbers in real time

📞 Let’s make tax easier.Contact LMH Accounts Ltd today to start preparing for MTD for Income Tax and avoid the last-minute scramble.

📧 Email: leanne@lmhaccounts.co.uk📞 Call: 07429 179767🌐 www.lmhaccounts.co.uk

 
 
 

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