Making Tax Digital (MTD) is HMRC’s flagship programme to make tax reporting simpler, more accurate and fully digital. It already applies to VAT and will start to cover income tax from April 2026. If you’re self-employed or a landlord, these changes will affect you sooner than you think.

Who Will Be Affected and When

From April 2026, anyone earning over £50,000 from self-employment or property will need to use MTD. The threshold then drops to £30,000 in April 2027 and £20,000 in April 2028. These thresholds are based on gross income, not profit. That means even landlords or small business owners with high turnover but small margins will be included.

What Will Change Under MTD

Instead of submitting a single annual tax return, you’ll be required to keep digital records throughout the year. Using HMRC-approved software, you’ll submit quarterly updates of your income and expenses. At the end of the tax year you’ll send a “Final Declaration” to confirm everything and make adjustments for reliefs, allowances and any other income sources.

Why Preparing Early Matters

Preparing now will help you avoid last-minute stress, penalties and cash-flow surprises. By moving to digital record keeping early, you’ll get used to new systems, reduce the chance of errors and see a clearer picture of your finances throughout the year. This also makes it easier to forecast your tax bills and plan ahead.

How We Can Help You

We’re already fully set up for Making Tax Digital. We can recommend and install HMRC-approved software, manage your quarterly submissions, and provide hands-on training so you and your team stay compliant. Even if you’re not yet required to use MTD, starting now will save you time later and put you ahead of the curve.

Start Your Digital Journey Today

Making Tax Digital is not just a compliance exercise — it’s an opportunity to modernise your bookkeeping and gain better financial insight. The sooner you act, the smoother the transition will be.

Need help with Making Tax Digital? Contact us today to see how we can make the switch simple and stress-free.