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Are you ready for the change coming in April 2026?

HMRC is rolling out major changes to how individuals and business owners report their income.
If you are self-employed or a landlord, and your qualifying income exceeds the new thresholds,
you will soon move from annual reporting to quarterly digital submissions.
MTD is mandatory once you fall into scope — and non-compliance will bring penalties.
RMC Accountants can help you prepare now, so everything is smooth, compliant and stress-free.

Who will need to comply? – Key dates and thresholds

HMRC has set phased deadlines for MTD for Income Tax:

2024/25 tax year

If your qualifying income is over £50,000, you join the MTD regime from 6 April 2026.

2025/26 tax year

If your qualifying income is over £30,000, you also join from 6 April 2026.

From 2028

Individuals with qualifying income over £20,000 will need to comply.

Your qualifying income is broadly the total income from self-employment and property before expenses and reliefs.
HMRC will assess your position based on submitted tax returns.
If you’re unsure whether you fall into these categories, we can help you check.

What does MTD for Income Tax involve?

Under the new rules, you must:

  1. Keep your business records in ‘functional, compatible software’
    This means you will need digital bookkeeping software that links directly to HMRC.
  2. Submit quarterly updates to HMRC
    Every three months, you’ll send a digital summary of your income and expenses through your software.
  3. Submit an end-of-year final declaration
    This replaces the current Self Assessment tax return and finalises your tax position for the year.

This is a significant shift — particularly for busy family-run and owner-managed businesses used to annual reporting.

1

Check whether you’re in scope

Some individuals may be exempt if they are “digitally excluded” due to age, disability, religion or remoteness. We can help you determine whether this applies.
2

Ensure you are using compatible bookkeeping software

We’ll review your current system and recommend the setup best suited to your business. If you’re still using spreadsheets or paper records, we’ll guide your transition.
3

Adopt a quarterly-reporting mindset

Regular, up-to-date bookkeeping will become essential. We can support you or take this on entirely, depending on your preferences.
4

Consider joining the 2025/26 MTD Pilot

HMRC will open a testing programme. Taking part early helps you become comfortable with the new rules. Let us know if you’d like us to enrol you.
5

Decide how much support you need

You might want to continue doing your own bookkeeping — or you may prefer us to handle everything from bookkeeping to submissions and digital filing. We’ll work around what suits your business and family life.

How RMC Accountants Can Help

We specialise in supporting family-run and owner-managed businesses, so we understand the pressures of balancing day-to-day operations with compliance.

  • MTD Readiness Review – assessing whether and when you fall into scope
  • Software setup and digital migration
  • Quarterly bookkeeping and submissions
  • Ongoing support and reminders
  • End-of-year MTD finalisation
  • Training for you or your team if you prefer to handle digital bookkeeping in-house

Our goal is simple:
to keep you compliant, organised, and confident — without adding to your workload.

FAQs

What counts as qualifying income?

Self-employment and property income before expenses. We can check this for you.

Can I keep using spreadsheets?

No — you must use software that integrates with HMRC.

Will penalties apply if I don’t submit quarterly updates?

Yes. MTD has its own penalty regime for late submissions and payment.

Does this replace the Self Assessment return?

Mostly, yes. The end-of-year final declaration is the new equivalent.

When should I start preparing?

Now — the earlier you adopt digital bookkeeping, the smoother your transition will be.

Ready to Prepare for MTD?

Call us on 020 3928 6205
Email Ruth@rmcaccountants.co.uk
Or send us a WhatsApp message directly from the website