Simplifying MTD IT for retired people
From April 2026, HMRC's Making Tax Digital for Income Tax (MTD IT) rules apply to anyone with gross income from property and/or self-employment above £50,000 a year. If you're retired and receive rental income or any other trading income, you may need to change how you report tax to HMRC.
This threshold will then reduce to £30,000 in April 2027, and it's expected to fall further to £20,000 in 2028.
Why TaxNav
TaxNav eases the process
At TaxNav, we're helping retired people prepare for these changes. Our HMRC-recognised software, combined with our support, makes it easier to maintain digital records, submit the required quarterly updates, and stay fully compliant with HMRC's MTD IT reporting requirements.
You don't have to give up the way you already record your income and expenses. You can continue using your own spreadsheet (or use our ready-made templates) and simply link it via the TaxNav app. The totals are automatically imported into the software and sent securely to HMRC, keeping you fully compliant with MTD IT and with minimum effort.
Overview
What MTD IT involves for the self-employed
A common misconception is that MTD IT only affects people who are still working. In reality, HMRC looks at income sources, not employment status. If your gross income from property and/or self-employment exceeds the mandatory threshold, MTD IT will change how you manage your tax reporting. Instead of filing one annual Self Assessment, you'll need to:
Keep digital records
Send quarterly updates
Submit a final declaration
Your final declaration is also where you'll report other income such as pension income, savings interest, dividends, capital gains, and any benefits and credits.
Who's affected
Who must follow MTD IT
MTD for Income Tax applies to retired individuals whose qualifying income exceeds HMRC's threshold. This includes:
Retired people with rental income from one or more properties
Those with income from furnished holiday lets or Airbnb
Retired individuals with foreign property income
Those with both property income and any other trading income
Individuals with jointly owned property, where each person must report their share separately
Anyone who is retired but also receives self-employment or other trading income
These are just a few examples. If you're earning income from property or self-employment, and are above the threshold, the new rules will apply to you.
Don't wait
Getting MTD IT-ready
Now MTD IT has arrived, it’s important to get set-up and ready:
This is particularly helpful if you have multiple income sources, as many retired people do. MTD IT becomes much easier when everything is captured in one place, automatically and consistently throughout the year.
People with income over £30,000 from self-employment and/or property will need to join MTD IT from April 2027. You can, however, volunteer to join early and get familiar with it before your HMRC deadline.
Check out our handy ‘get-ready’ guide.
Our support
How TaxNav supports retired people
At TaxNav, we're already part of HMRC's MTD IT pilot programme. Our software and support have been designed to handle the complexities of mixed income sources, whether that's from a single property, furnished holiday lets, overseas rentals, jointly owned properties, or a combination of property and self-employment income.
Here's how we can make the transition to Making Tax Digital for Income Tax easier and less stressful.
Stay compliant with confidence
Record and report with ease
Simple, secure and cost-effective
Start early and stay ahead
MTD IT became mandatory for many retired people in April 2026, with more expected to follow in the years after. Getting started now means you'll be ahead of the curve, with no surprises or last-minute panic.
Whether you have rental income, trading income, or a combination of sources, TaxNav brings all your income streams together, showing the information HMRC requires in an easy-to-understand way. It helps you keep digital records, prepare quarterly updates, and complete your Final Declaration with confidence.
If you're ready to try simple, affordable software built around how you actually work, TaxNav is ready when you are.
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Important: You'll need to sign up for MTD IT with HMRC first before you can complete onboarding with TaxNav.