Making Tax Digital – Income Tax

Making Tax Digital for Income Tax (MTD IT) Self Assessment requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using approved software such as KEYPrime. For individuals, MTD for IT will be introduced in three phases:

•              from April 2026, for those with qualifying income over £50,000

•              from April 2027, for those with qualifying income over £30,000

•              from April 2028, for those with qualifying income over £20,000

The government remains committed to the future introduction of MTD for IT to partnerships.

Getting ready for MTD IT

To help you prepare, we have below an Excel MTD_IT Preparation Template that will assist you in mapping your current Nominal codes with the HMRC categories for submission. This preparation template covers both Property and Self Assessment businesses. You can copy your Trading nominal codes into the spreadsheet (Sales, Purchases, Fixed Direct Costs and Overheads. Valuation change and Depreciation may also be included).

You can add the relevant HMRC Income or Expense category against each trading nominal with the assistance of your Accountants or the HMRC guidance notes for each category, in preparation for when MTD IT goes live.  

Setting Up a Taxable Entity

Full access is granted to Self Assessment inside v15.0, the button will show under Ledgers. For those who have sufficient qualifying income and are eligible you will be able to set up a new Self Assessment business. Select the New option, enter your National Insurance number and follow the instructions for signing into your Government Gateway account. This will allow you to create the Tax Business(s) linked to the National Insurance number provided and then retrieve and complete the obligations when due.

Before you start making submissions you can elect to submit calendar quarters instead of 5th July etc but due dates remain the same

Each submission is a cumulative period:

Q1 – 6th April to 5th July – due 7th August

Q2 – 6th April to 5th October – due 7th November

Q3 – 6th April to 5th January – due 7th February

Q4 – 6th April to 5th April – due 7th May