making tax digital

Managing Making Tax Digital for Spice Taxation Clients

At Spice Taxation, we support a diverse range of clients, including many non-resident landlords and
self-employed individuals with UK-sourced income. Making Tax Digital for Income Tax (MTD ITSA)
introduces significant changes to how qualifying income from self-employment and UK property is
reported.
While the regime applies broadly to those above certain income thresholds, there are some
exemptions. However, it is important to note that MTD ITSA does apply to Non-Residents with rental
income or UK self-employment profits – except if you don’t have a National Insurance Number.
MTD for Income Tax requires eligible individuals to maintain digital records and submit quarterly
updates plus an end-of-year reconciliation, starting from April 2026 for those with qualifying income
over £50,000 (based on the 2024/25 tax year). This threshold reduces to £30,000 (based on the
2025/26 tax year) for a start in the 2027/28 tax year, and further to £20,000 (based on the 2026/27
tax year) for a start in the 2028/29 tax year.
This applies to non-residents as well as UK residents. If you’re a non-resident with UK self-
employment income, UK property rental income, or overseas property income that qualifies, and
your combined gross qualifying income exceeds the threshold, you must comply with MTD ITSA for
that UK-taxable income—regardless of where you live.

Woman stressed over financial receipts at a desk, dealing with expenses and calculations.
hands, team, united, together, people, unity, teamwork, group, hand in hand, union, support, friendship, cooperation, community, holding, connection, harmony, diversity, cut out, hands, hands, hands, hands, team, team, team, team, team, together, together, people, people, people, people, unity, teamwork, teamwork, group, support, support, friendship, friendship, community, community, community, community, connection, diversity, diversity, diversity, diversity

The Increased Compliance Burden from April 2026

For those who must comply (including many non-residents with an NI number and qualifying income above the threshold), the shift is substantial.  From 6 April 2026, you’ll need to:

  • Maintain digital records from the start of the tax year
  • Submit four quarterly updates each year, summarising income and expenses for the following periods:
  1.  6 April 2026 – 5 July 2026, due by 7 August 2026
  2. 6 July – 5 October 2026, due by 7 November 2026
  3. 6 October 2026 – 5 January 2027, due by 7 February 2027
  4.  6 January – 5 April 2027, due by 7 May 2027
  • Then submit a final declaration (end-of-year reconciliation) by 31 January 2028 for the 2026/27 tax year, which reconciles everything, applies reliefs, and calculates your exact tax liability.

That means five filings per year under MTD—four quarterly updates plus one end-of-year declaration—compared to the traditional single annual Self Assessment return.

In the transition year,  your 2025/26 tax return (covering the period ending 5 April 2026) must still be filed in the old way by 31 January 2027. You’ll therefore handle the final traditional return while simultaneously preparing for and starting the new quarterly digital regime from April 2026 onward.

Yes—that’s a lot of compliance.  Moving from one annual submission to five digital filings annually, plus ongoing digital record-keeping, significantly increases the administrative burden, especially if you’re currently using basic tools or paper records.

How Spice Taxation Can Support You

Whether you’re a UK resident facing the full quarterly compliance burden or a non-residentassessing your position:

  • We review your status — Checking your qualifying income, residency, and NI number details to confirm if MTD applies or if you’re exempt (e.g., due to no NI number).
  • For those who must comply — We handle software selection/setup, digital record-keeping, quarterly updates (four per year from April 2026 onward), the end-of-year reconciliation, and seamless transition from your final traditional 2025/26 Self Assessment return.
  • For exempt clients — We ensure continued accurate Self Assessment filing, maximising reliefs and avoiding unnecessary changes.
  • Proactive planning — Especially for non-residents, we monitor any changes (e.g., if an NI number is issued) and provide tailored advice on UK tax obligations. 

The shift to MTD increases administrative demands for many, but exemptions like the one for those without an NI number can simplify things significantly for non-residents—and for those who must comply, expert support makes the quarterly process manageable and even beneficial for cashflow visibility.  If you’re unsure about your NI number status, qualifying income, or how MTD affects you as a non-resident, contact us today and our team will provide clear, personalised guidance to keep you compliant and optimised.

CONTACT US