MTD for Income Tax is one of the biggest changes to how small businesses and landlords report their income. And while the idea of quarterly tax updates might sound overwhelming, the good news is that we’re on it!
What is MTD for Income Tax?
From April 2026, if you earn more than £50,000 from self-employment or property income, you’ll need to:
- Keep digital records – we recommend Xero accounting software; choose the Xero simple licence.
- Submit quarterly updates to HMRC
- Send a final end-of-year declaration
From April 2027, this drops to £30,000 – and more people will be brought into the fold.
What do I need to do now?
- Make sure you’re using compatible software – we recommend Xero.
- Talk to us about when you’ll need to register (and whether you might benefit from joining early).
- Relax – we’ll make sure your setup is compliant, efficient, and stress-free.
What will change for me?
Not much, if we’re already managing your bookkeeping. You’ll still log your income and expenses in Xero. We’ll handle the rest.
Final thought:
This is one of those changes that can feel big. With the right software and the right team, it doesn’t have to be.
You’ll stay compliant. You’ll stay on track. And you won’t have to think about it more than you need to.
If you are still unsure contact us via email prosper@sbca.co.uk and one of our team can discuss this further.