Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether local councillors will be included in Making Tax Digital scheme.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. Qualifying income is the total income from self-employment and property, assessed before expenses.

Local Authority councillors are office holders rather than sole traders. Their income and allowances do not count towards qualifying income for the purposes of Making Tax Digital for Income Tax.

Where a councillor has additional qualifying income from self-employment or property, they will need to comply where that income exceeds the MTD thresholds.

If a councillor is required to use MTD, and where expenses are claimed through a return, the councillor would make that claim as part of the end-of-year tax return through their MTD software.