The “Understanding Making Tax Digital for Income Tax” section of the Get ready for MTD: an agent toolkit guidance on GOV.UK explains how the UK’s Making Tax Digital (MTD) for Income Tax system will work and what it means for tax agents and their clients. It clarifies that MTD is a new digital way for sole traders and landlords to report income and expenses to HMRC, replacing traditional annual paper or online Self Assessment returns for many taxpayers.

The guidance outlines which clients will need to use MTD based on their qualifying income thresholds over the next three years (beginning with those earning over £50,000 from self-employment and property in tax year 2024–25, who must start using MTD from 6 April 2026), and how to use compatible software to maintain digital records, submit quarterly updates of income and expenses, and complete the end-of-year tax return.

It also describes how quarterly summaries are generated from software, how the annual return is pre-populated with that information, and changes to penalty rules under MTD aimed at encouraging accurate and timely digital submissions. Finally, the guidance highlights benefits such as better financial visibility for clients and encourages agents to review full supporting materials to prepare both their practice and clients for the transition.


https://www.gov.uk/guidance/get-ready-for-mtd-an-agent-toolkit/understanding-making-tax-digital-for-income-tax