HMRC MTD changes to Sole Traders and Landlords

Making Tax Digital (MTD) for Income Tax

Sole traders and landlords who have a total income from self-employment and property of over £50,000, in their‌‌‌ 2024‌‌‌ to‌‌‌ 2025‌‌‌ Self Assessment tax return, will need to use Making Tax Digital (MTD) for Income Tax from 6‌‌‌ April‌‌‌ 2026 (unless they’re exempt).

In April 2025 HMRC will be contacting individuals if their self assessment tax return for 2023 to 2024 shows income from these sources close to or over £50,000. 

We will need to take steps from April 2025 to prepare for this change. Please get in touch from April 2025 to start this process on highpeakacc@hotmail.com . 

Please note that from 6th April 2027 the threshold will be £30,000 so Sole traders and landlords who have a total income from self-employment and property of over £30,000 will also be required to use MTD for Income Tax.