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Making Tax Digital for Income Tax (MTD IT) quarterly reporting and basis period reform are the biggest changes to administration of income tax in over 25 years. What does this mean for advisers and their clients?

This guidance note looks at some key choices, challenges and opportunities as the start date approaches:

1. •

   there’s a problem with accounting dates: if, when and how they should change?

2. •

   workflow in the move to quarterly reporting and basis period reform needs careful managing

3. •

   if one’s in, it’s all in: check clients with multiple income streams

Sole traders with turnover above £50,000 will need to follow the rules for Making Tax Digital for income tax (MTD IT) from 6 April 2026. Those with turnover over £30,000 will join from 6 April 2027.

MTD IT is to be extended to sole traders and landlords with turnover / gross rental income over £20,000 by April 2028.

For more details on MTD IT and basis period reform see the Making Tax Digital for