Making Tax Digital (MTD) reporting while on Maternity Leave

Making Tax Digital (MTD) reporting while on Maternity Leave

Mothers on maternity leave will still have to file quarterly updates under Making Tax Digital for Income Tax, even if earnings are nil, if they are in the first £50,000 threshold.

HMRC has confirmed the nuances of the MTD for Income Tax rules for women on maternity leave who fall into the first £50,000 threshold for quarterly reporting, requiring mandatory registration from 6 April 2026 based on qualifying income earned in the 2024-25 tax year.

When asked about women going on or already on maternity leave and what they would need to do – HMRC said: ‘Customers will need to use MTD for Income Tax if their qualifying income (total gross income from self-employment and property) is more than £50,000 for the 2024 to 2025 tax year.’

‘If a customer starts using MTD and then goes on their maternity leave, then their obligations will depend on what they do.’

‘If their business continued, or has only temporarily stopped trading due to the maternity, then they need to continue to use MTD.’

‘If their qualifying income was to fall below the MTD threshold for three consecutive years, they would be able to opt out.’

If you are unsure how MTD will affect you, please contact us, the team will be pleased to put an accounting package together for you.