Important Update: Making Tax Digital – What It Means for You from April 2026
- Aleksandar Davidov
- Jul 10
- 1 min read
HMRC is continuing its phased rollout of Making Tax Digital (MTD) – a government initiative designed to modernise the UK tax system by requiring businesses and individuals to maintain digital records and submit returns using compliant accounting software.
✅ What’s Changing?
From 6 April 2026, MTD for Income Tax Self-Assessment (ITSA) will become mandatory for:
Self-employed individuals (sole traders) and
Landlordswho have total gross income over £50,000 per year (combined self-employment and rental income).
If this applies to you, you’ll no longer file a single Self Assessment return once a year. Instead, you will need to:
Keep digital accounting records using MTD-compatible software
Submit quarterly updates to HMRC (every 3 months)
Submit a final declaration by 31 January following the tax year
🗓 What’s Next?
From 6 April 2027, MTD will extend to those earning over £30,000
HMRC has yet to confirm when it will apply to all self-employed individuals and landlords below this threshold
⚠️ Limited Companies are not yet included in these changes for Income Tax. MTD for Corporation Tax is still under consultation and not expected before 2026 at the earliest.
📌 What Should You Do Now?
Check your income: If your combined self-employment and rental income exceeds £50,000, you’ll need to comply from April 2026
Start keeping digital records: Switching early to MTD-compatible software like Xero, QuickBooks, or FreeAgent can make the transition smoother
Talk to us: We’re here to support you through the process, recommend the right software, and help manage the reporting deadlines
📞+44 7939 952432
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