📢 What the New HMRC Making Tax Digital Rules Mean for You
- Aleksandar Davidov
- Sep 24
- 1 min read
HMRC’s Making Tax Digital (MTD) initiative is transforming the way individuals and businesses keep records and submit tax returns. The goal? To make tax easier, more accurate, and reduce errors. But what does it actually mean for you?
📝 What’s Changing?
Digital record-keeping: No more paper receipts stuffed in drawers. You’ll need to keep your accounting records in digital format.
Approved software: Tax submissions must be made through HMRC-recognised software (like Xero, QuickBooks, FreeAgent, etc.).
More frequent updates: Instead of once-a-year submissions, businesses and landlords will send quarterly digital updates to HMRC.
👩💼 Who Is Affected?
Currently, all VAT-registered businesses must comply.
From April 2026, self-employed individuals and landlords with income over £50,000 will need to follow MTD rules for Income Tax Self Assessment (ITSA).
From April 2027, the threshold lowers to £30,000.
💡 What This Means for You
Less paperwork, but more regular reporting.
A need to get comfortable with cloud accounting tools.
Greater visibility into your financial position throughout the year.
If you’re not ready, it could mean penalties for late or incorrect submissions.
✅ Next steps: If you’re self-employed, a landlord, or running a small business – now is the time to get set up with the right software and processes.
👉 Do you already use accounting software, or are you still relying on spreadsheets?
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