Making Tax Digital (MTD) for Income Tax
A Complete Guide for UK Landlords, Sole Traders and Expats
Making Tax Digital (MTD) for Income Tax is transforming how individuals report their income to HMRC. From April 2026, many UK landlords and self-employed individuals will be required to submit quarterly updates using digital software.
At AUK Tax, we specialise in helping UK taxpayers - including those living overseas - understand whether MTD applies to them and manage the transition with confidence.
How AUK Tax Supports You
Assessment of whether MTD applies to you
Guidance on HMRC-compliant software
Setup and onboarding support
MTD Setup and Readiness
FAQ’s
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Yes. MTD for Income Tax has become mandatory from April 2026 (provided you fall within the scope for year tax year beginning 06 April 2026)
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Yes. HMRC requires the use of compatible software to maintain digital records and submit updates.
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Spreadsheets may be used if they are linked to compatible bridging software that allows submission to HMRC.
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You will need to keep digital records of:
Income received
Allowable expenses
Business or property details
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MTD does not change how tax is calculated. However, more frequent reporting may provide better visibility and reduce the risk of errors.
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HMRC will introduce penalties for late or incorrect submissions under the new regime.
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If your income drops below the threshold, you may fall out of MTD, but this depends on HMRC’s detailed rules and timing.
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Possibly. While many non-residents may not be in scope, your position depends on your residency status and income sources. A review is recommended.
Prepare for Making Tax Digital
Making Tax Digital is a fundamental shift in how the UK tax system operates. Whether you are based in the UK or overseas, understanding your obligations early is key.
If you would like clarity on how MTD applies to your situation, AUK Tax can help you prepare with confidence.
Contact us today to discuss your position.