Making Tax Digital for Income Tax: What You Need to Know.

With just over a year to go before Making Tax Digital for Income Tax (MTD for IT) becomes mandatory, now is the time to prepare. From 6 April 2026, thousands of businesses will be required to comply with new digital tax reporting rules—are you ready?

At SJC Chester, we help businesses and landlords stay ahead of tax changes, choose the right software, and ensure a seamless transition to MTD compliance. Here’s what you need to know.

Who Needs to Comply with MTD for IT?

If you are a sole trader or run an unincorporated property business, you will need to comply with MTD for IT from 6 April 2026 if your ‘qualifying income’ is £50,000 or more in the 2024/25 tax year.

How do you know if you’ll be affected?

• Your 2023/24 self-assessment tax return (due by 31 January 2025) will give you an early indication.

• If your qualifying income was above or close to £50,000, and you expect it to remain at that level or increase in 2024/25, you will likely be required to comply.

• HMRC will notify affected taxpayers in the coming months based on 2023/24 tax return data.

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From April 2027, the income threshold for MTD for IT will drop to £30,000, bringing even more businesses into the digital tax system.

What Does MTD for IT Mean for You?

Digital Record-Keeping: Businesses must keep detailed accounting records in MTD-compatible software (spreadsheets won’t be enough).

Quarterly Digital Tax Submissions: Instead of a single annual tax return, you’ll need to send updates to HMRC every three months.

New Processes & Software: Businesses must adapt to digital tools to ensure compliance, accuracy, and efficiency.

While this may seem like a big change, MTD for IT can actually help your business by improving financial clarity, reducing errors, and streamlining tax reporting.

How SJC Chester Can Help You Prepare

At SJC Chester, we take the stress out of Making Tax Digital by offering:

✔ Personalised MTD Guidance – Find out if and when you’ll be affected.

✔ Software Solutions – We help you choose the right MTD-compliant software for your business.

✔ Seamless Implementation – Get expert support to set up and manage digital tax records effortlessly.

✔ Ongoing Compliance Support – Stay ahead of deadlines and HMRC requirements with our proactive tax advice.

Act Now & Stay Ahead of the Deadline

Get in touch with our team today for expert advice tailored to your needs.