HMRC’s latest figures reveal that nearly 3 million individuals with self-employment or property income will be required to comply with Making Tax Digital for Income Tax (MTD for ITSA) between April 2026 and April 2028.
At PM+M, we understand that MTD can feel daunting for businesses and landlords alike. With deadlines approaching, now is the time to prepare — and we’re here to make the transition seamless.
The phased rollout of MTD
HMRC is introducing MTD gradually, based on income levels:
- From April 2026 – Anyone with self-employment or property income above £50,000 must keep digital records and submit quarterly updates. This affects around 864,000 taxpayers.
- From April 2027 – Those with income between £30,000 and £50,000 join the scheme, bringing in an additional 1,077,000 taxpayers.
- From April 2028 – The final group, with income between £20,000 and £30,000, will be included, adding 975,000 more taxpayers.
By the end of the rollout, around 2.9 million individuals will be within the scope of MTD ITSA.
Who will be affected?
HMRC data shows that large numbers of people will be drawn into MTD as thresholds lower:
- More than 600,000 self-employed individuals and 260,000 landlords have income between £20,000 and £30,000 – they will join in 2028
- Around 800,000 self-employed individuals and 182,000 landlords fall within the £30,000 to £50,000 band – they will be required to comply from 2027
- Over 600,000 self-employed individuals, 118,000 landlords, and 141,000 people with mixed income already earn above £50,000 – meaning they are first in line from 2026
This illustrates the scale of the change: it’s not just high earners, but also smaller businesses and landlords who will be affected.
The digital readiness gap
One of the biggest challenges is that many taxpayers are still unprepared for digital tax reporting:
- 65% of those in scope currently use an authorised agent (such as an accountant)
- Among taxpayers without an agent, 83% do not use software to submit returns
- By contrast, most represented clients already use software – meaning those without professional support are the least prepared
Why you should act now
With nearly three million people moving to MTD, waiting until the deadline could put you at risk of non-compliance, unnecessary penalties, or administrative headaches. Transitioning early gives you time to:
- Get comfortable with digital record-keeping
- Adopt MTD-compliant software
- Ensure you’re submitting updates correctly and on time
How PM+M can help
We provide tailored solutions to make your MTD journey stress-free:
- Software setup + training – we’ll recommend and implement the right digital tools for your business
- Quarterly submissions – we can manage updates directly with HMRC, keeping you compliant
- Ongoing support – from troubleshooting software to tax planning, our expert team is here year-round
Whether you’re a sole trader, landlord, or running a small business, we’ll ensure you stay ahead of the curve.
Join us at our MTD drop-in days
To help you prepare, we’re hosting two free drop-in days where you can speak directly with one of our MTD specialists about any queries you may have – no appointment needed.
Thursday 25 September – Blackburn office (New Century House, Greenbank Technology Park, Challenge Way, Blackburn, BB1 5QB)
Tuesday 30 September – Bury office (First Floor, Sandringham House, Hollins Brook Park, Pilsworth Road, Bury, BL9 8RN)
Both sessions run from 10am to 4pm. Throughout the day, our team will be on hand to answer your questions on how MTD for ITSA will affect you, what digital records you’ll need to keep, the software options available, and how to make the transition to cloud accounting as smooth as possible.
These events are open to everyone – whether you’re a sole trader, landlord, or part of a finance team – so feel free to drop in for a brew and a chat.
Don’t leave MTD until the last minute
The shift to digital tax reporting is one of the biggest changes in decades. With phased deadlines already set, the sooner you act, the smoother the process will be.
Contact PM+M’s MTD experts today to discuss how we can help you transition to Making Tax Digital with confidence. Email enquiries@pmm.co.uk for more information.
