Get ready for Making Tax Digital for Income Tax with practical, straightforward support from Vanguard Accountants. We help sole traders, taxi drivers, landlords and other self-employed individuals keep their records organised and meet their HMRC reporting obligations.
Making Tax Digital for Income Tax is HMRC's digital system for reporting income and expenses for certain sole traders and landlords. Instead of relying solely on an annual Self Assessment return, business and property records are kept digitally and information is submitted to HMRC during the year.
The rules are being introduced in stages. Whether you need to use MTD, and when, depends on your qualifying income and circumstances.
MTD for Income Tax applies to certain individuals with income from self-employment, property or both.
If you are self-employed and your qualifying income is above the relevant threshold, you may need to use MTD for Income Tax.
Individuals with qualifying property income may also fall within the MTD for Income Tax rules.
From taxi drivers and tradespeople to consultants and other self-employed professionals, MTD may affect how you report income.
The introduction of MTD for Income Tax is being phased in according to qualifying income.
| Tax year used to determine eligibility | Qualifying income | MTD starts |
|---|---|---|
| 2024–25 | More than £50,000 | 6 April 2026 |
| 2025–26 | More than £30,000 | 6 April 2027 |
| 2026–27 | More than £20,000 | 6 April 2028 |
Thresholds and eligibility rules can depend on your circumstances. Vanguard Accountants can help you understand what the rules mean for your business.
Planning ahead can make the transition much easier.
MTD for Income Tax starts for individuals whose qualifying income was more than £50,000 for the 2024–25 tax year, subject to the relevant rules and exemptions.
The next stage applies to individuals whose qualifying income was more than £30,000 for the 2025–26 tax year.
The threshold is scheduled to reduce further, with MTD applying to qualifying income above £20,000 for the relevant 2026–27 tax year.
From getting organised to ongoing reporting, our accounting support can help you prepare for the transition to digital tax reporting.
We review your circumstances and help you understand whether MTD for Income Tax may apply to you and when.
We help you understand what financial records you need to maintain and how to keep your business information organised digitally.
We can help you understand the role of compatible accounting software in your MTD process.
We can support you with the information and accounting processes needed for quarterly reporting.
We can help prepare the relevant year-end information and Self Assessment requirements.
Instead of dealing with your accounts alone, you can have ongoing support from Vanguard Accountants.
If you're a taxi driver or private hire driver, keeping track of your income, mileage and business expenses can be time-consuming. We can help you organise your accounts and understand your tax reporting responsibilities.
Whether you drive full-time, part-time or combine your driving income with other work, we can help you keep your accounting process organised.
Your time is better spent running your business.
Preparing early can make your transition to digital reporting much easier.
Your business and property income and expense records need to be maintained digitally where MTD rules apply.
You need software that works with MTD for Income Tax to maintain records and send the required information to HMRC.
An accountant can help you understand the requirements and keep your accounting process organised.
Getting your records and accounting processes organised early can reduce last-minute pressure.
Keep your business income and expenses organised throughout the year instead of leaving everything until the deadline.
Regularly maintained records can give you a clearer picture of your business finances.
Preparing your records and software ahead of time can make your reporting process more manageable.
Some of the common questions we receive about MTD for Income Tax.
Making Tax Digital for Income Tax is HMRC's digital reporting system for certain sole traders and landlords. It requires digital records and periodic reporting using compatible software.
It can. Taxi drivers operating as sole traders may need to use MTD for Income Tax if their qualifying income is above the relevant threshold and they meet the other requirements.
MTD for Income Tax is being introduced in stages. The first mandatory stage began on 6 April 2026 for qualifying income above £50,000 based on the relevant 2024–25 tax year. Further thresholds apply from April 2027 and April 2028.
For MTD purposes, qualifying income is generally the total income from self-employment and property before expenses, based on the relevant tax year used to determine when the rules apply.
Yes. MTD does not simply replace all tax return obligations. The year-end process still involves submitting the relevant tax return and making any required adjustments, claims or other declarations.
Yes. Vanguard Accountants can provide accounting support to help you understand the requirements, organise your records and prepare for the digital reporting process.
Don't wait until your reporting requirements become a problem. Speak to Vanguard Accountants about your circumstances and find out how we can support you.
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