Making Tax Digital for Income Tax

Making Tax Digital for Income Tax is changing the way installers manage their finances – and it’s something you can’t ignore.  

Here’s a brief run through what’s changing and how you can prepare. 

What is Making Tax Digital for Income Tax about? 

Up to now, most installers have managed tax with one yearly return, often sorting receipts and paperwork at the last minute. 

 
However, from April 2026, you’ll need to keep a digital record of your income and expenses using compatible software, rather than relying on paper or spreadsheets.  

The new process requires regular updates to HMRC throughout the year to give a clearer picture of your tax position as you go – rather than providing everything at the end of the tax year. 
 

The new Making Tax Digital for Income Tax process: 

• Track income and expenses digitally with compatible software  

• Send quarterly updates to HMRC (summary totals, not full returns) 

• Submit a final declaration by 31 January to confirm your tax position 

Who does the Making Tax Digital for Income Tax affect? 

• Installers whose 2024-2025 tax return shows income over £50,000 

• You’ll need to start using Making Tax Digital for Income Tax from April 2026 onwards 

While it might sound like extra admin, it should make your tax more manageable. No more last-minute stress because you’ll be able to stay on top of your finances as you go. 

What you should do now 

• Check your yearly income 

• Speak to your accountant 

• Choose simple HMRC-compatible software (ideally mobile-friendly) 

Get set up now – Making Tax Digital for Income Tax has already starttep of the way.