MTD will require you to keep digital records and submit quarterly returns to HMRC followed by an annual summary return. This new process aims to improve efficiency, reduce errors and give tax payers a clearer picture of their tax position throughout the tax year. 

The roll out is phased with the first phase starting in April 2026, phase 1 includes self-employed individuals and landlords with annual business or property income exceeding £50,000.

Phase 2 commences in April 2027 and will reduce the income threshold to £30,000. 

It is expected that the threshold will continue to reduce in future years. 

If you would like help with this new process and anticipate being included in the first phases, please get in  touch to discuss how to get started.