Who will be affected?
What will change for you?
You’ll be affected by MTD for ITSA if:
Instead of submitting one tax return a year, you’ll need to:
•
You’re registered for Self-Assessment
• Submit quarterly updates of income and expenses to HMRC
• You earn income from self-employment (e.g. construction work, subcontracting)
• Keep digital records of your business transactions with compatible software
•
You earn rental income as a landlord
• File a final digital tax return at year-end (similar to the current Self- Assessment)
Your gross income (before expenses) is over:
If you have just one trade, you’ll submit 4 updates per year. If you also have rental income, you’ll need to submit 8 updates (4 for each source).
•
£50,000 in 2024/25
Quarterly deadlines
•
£30,000 in 2025/26
•
£20,000 in 2026/27
Quarter
Period Covered
Filing Deadline
Example: If your total turnover from self-employment as a builder in 2024/25 is £52,000, you’ll need to comply with MTD from April 2026.
Q1
Apr–Jun
7 August
Q2
Jul–Sep
7 November
What counts as qualifying income?
Q3
Oct–Dec
7 February
Q4
Jan–Mar
7 May
For sole traders in the construction and property sector, qualifying income includes:
What if you don’t comply?
•
Turnover from self-employment (before expenses)
•
Rental income, if you also let out property
MTD is mandatory, and failing to comply could result in penalties from HMRC. It’s important to get ahead of the changes now so you’re not caught out later.
•
Certain types of trust or investment income
How to get prepared?
If you have multiple income sources (e.g. building work + rental property), they’re added together to assess if you meet the threshold.
You can start preparing now by:
When will you need to start?
• Switching to digital record keeping (if you haven’t already)
Tax Year Assessed
Income Threshold
MTD Start Date First MTD Tax Year
•
Exploring software options that suit your business
• Checking if your current system is HMRC-approved
2024/25
£50,000
6 April 2026
2026/27
2025/26
£30,000
6 April 2027
2027/28
To find out more about the changes read our MTD Commonly Asked Questions here or for more detailed advice to support your transition contact one of the team on 0330 058 6559 or email hello@scruttonbland.co.uk
2026/27
£20,000
6 April 2028
2028/29
P R O P E R T Y A N D CONSTRUCTION | SCRUTTON BLAND | 1 1
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