Making Tax Digital is coming – get ready now
From April 2026, Making Tax Digital (MTD) for Income Tax will transform how self-employed individuals and landlords manage their tax.
In fact, it’s the biggest change to Income Tax since HMRC launched Self Assessment more than 30 years ago.
Who’s affected:
- Firstly from April 2026: Sole traders and landlords with turnover over £50,000
- Secondly from April 2027: Sole traders and landlords with turnover over £30,000
- And then from April 2028: Sole traders and landlords with turnover over £20,000
What’s changing:
You’ll need to use recognised software to keep records of your self-employment and property income and expenses, and send quarterly updates to HMRC. These quarterly updates aren’t tax returns – they’re just simple summaries of how your business is doing, in four smaller chunks, pulled from your records. You won’t pay four tax bills a year; the deadline for paying your tax will still be 31 January, but the process will be much simpler thanks to your quarterly updates.
Why these changes will help:
- reduce the chance of making errors in your returns, which can cost time and money to correct later
- make sure you have up-to-date, accurate information to avoid scrambling for lost receipts and to help with business planning
- move your tax records onto one new HMRC platform supporting wider improvements
- forecast your predicted tax bill to avoid surprises and make sure you pay the right amount of tax
Like any big change, it may take time to adjust to doing things differently. But you can get ahead early by signing up to test the service now. This will let you:
- build confidence with the new process before it becomes mandatory
- learn at your own pace
- access dedicated support and HMRC’s specialist MTD Customer Support Team
Here is a helpful checklist to get ready for MTD
✓ Check if you’re affected – Work out your qualifying income from self-employment and property to see when you need to start using MTD
✓ Find out your start date – Based on your income:
£50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026
£30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027
£20,000 for the 2026 to 2027 tax year, you will need to use it from 6 April 2028
✓ Choose your software – Find compatible software that works with Making Tax Digital (including free options for simple affairs)
✓ Speak to your agent – If you have an accountant or tax agent, make sure they’re prepared and can access compatible software
✓ Sign up for testing – Get familiar with the new process before it becomes mandatory
Start keeping digital records – Begin using your chosen software to record income and expenses
For helpful guidance on how to get started, visit the Making Tax Digital campaign page, or speak to your agent if you have one.
Helping you with Making Tax Digital
Contact us now if you need help with this
Or just email us if you want our:
- New Business Start-up Checklist, or;
- Business Plan Template, or;
- Help with
- Bookkeeping
- Software
- Accounts
- Taxes
Achieving Success with your business
If you’re just starting your new business venture or struggling with the steps to the next level contact us now.
We can help you with this and much more
Get ready for success with Moore Financial Management
We can help you with all of your compliance obligations such as:
- Self Assessment Tax
- Making Tax Digital
- Corporation Tax
- Filing Accounts
- VAT
- Payroll and Pensions
But also the things you really need to increase the chances of your business being a success
- Management Accounts
- Cashflow Reporting & Forecasting
- Budgets
- Real Time up to the minute information
These are the things that add value and the information you need in order to make the correct business decisions
If you’re not confident with any of this or don’t have the time, getting a licensed accountant to do it for you can actually save you money. It can free up your valuable time which you can use to concentrate on your business. You can also benefit by knowing it has been done correctly and on time.
Mistakes can be costly.
As can missing deadlines.
