01 October 2025

By now we’re sure that at some point you’ve heard the term Making Tax Digital (MTD) – it’s been a hot topic for many businesses over the past few years.

In simple terms, MTD means that all business accounts will eventually flow electronically to HM Revenue & Customs (HMRC) at the click of a button.  This is to reduce errors, and in due course, allow HMRC to estimate tax liabilities more quickly and efficiently – although this function is still very much in progress!

If you’re a sole trader or landlord or both, here’s when MTD ITSA (Income Tax Self Assessment) will apply to you:

  • April 2026 - for those with income over £50,000
  • April 2027 - for those with income over £30,000
  • April 2028 – for those with income over £20,000

To comply you’ll need to:

  • Keep digital records
  • Submit information to HMRC using compatible software

There’s no way around it – most sole traders will need to follow these rules!

Many of our clients have already started using MTD compliant software to get familiar with the process before it becomes mandatory. 

If you’re a Dodd & Co client and MTD for ITSA affects you, you will have already heard from our team.  We’ll continue to speak with you about your specific circumstances and provide tailored recommendations.

If you’d like help and advice to make sure you comply with MTD please enquire via mtdforit@doddaccountants.co.uk.