Making Tax Digital for Income Tax: it’s coming — here’s how to get ready

Author: Phillips & Co Accountants, Chester

Date: 19 September, 2025

MTD for Income Tax (MTD ITSA) starts soon. If your qualifying income (gross self-employment + UK property) is over £50,000 on your 2024/25 return, you’ll need to use MTD from 6 April 2026. Those over £30,000 on 2025/26 join from 6 April 2027.

What MTD changes for you

Under MTD ITSA you must:

Keep digital records in compatible software, and

Send quarterly updates to HMRC (standard periods end 5 July, 5 Oct, 5 Jan, 5 Apr; deadlines 7 Aug, 7 Nov, 7 Feb, 7 May).

After year end, submit an End of Period Statement and a Final Declaration. The first quarterly update for 2026/27 is due 7 August 2026.

HMRC has also indicated plans to lower the threshold further in a later phase (subject to legislation), so even if you’re under the initial limits, it’s wise to prepare now.
GOV.UK

Who’s affected first?

Sole traders and landlords who meet the thresholds above. Partnerships are not mandated in the first wave.

Your 4-step readiness plan

Check your qualifying income on your latest filed return to see when you start.

Choose compatible software (Xero and other HMRC-recognised tools) and switch on digital record-keeping.

Set quarterly routines (bank feeds, receipt capture, reconciliations) so updates are accurate and on time.

Map the year-end: who prepares your EOPS and Final Declaration, and when.

How Phillips & Co helps (Accountants Chester)

Since 2012 we’ve helped Chester businesses keep more, stress less:

MTD readiness review (are you in scope, and when?)

Software set-up and quarterly process you can actually stick to;

Preparation of EOPS and Final Declaration — on time, no drama;

Fixed fees, plain English support.

Call/WhatsApp today on: 01244 220 062

If you’d like expert guidance, contact Phillips & Co Accountants Chester today.

Keep More, Stress Less