Making Tax Digital (MTD) is the Government’s initiative designed to streamline and digitise tax reporting in the UK.<\/p>\n\n\n\n
While the MTD scheme has been in force for the past few years, changes are approaching, particularly self-employed individuals (sole traders) and landlords.<\/p>\n\n\n\n
Below, we outline clearly what MTD is, who it affects, the upcoming changes, and the steps you need to take to prepare.<\/p>\n\n\n\n
For more in-depth information, please see our full Making Tax Digital guide<\/a> or view our MTD roadmap infographic<\/a>.<\/p>\n\n\n\n What is Making Tax Digital<\/strong><\/p>\n\n\n\n MTD is intended to modernise the tax system by requiring digital record-keeping and regular digital submissions.<\/p>\n\n\n\n It is designed to increase accuracy, improve efficiency, and give taxpayers clearer visibility of their tax position throughout the year.<\/p>\n\n\n\n When do the MTD changes start?<\/strong><\/p>\n\n\n\n The next phase of MTD (MTD for Income Tax Self-Assessment (ITSA)) comes into effect from April 2026 and will impact:<\/p>\n\n\n\n You will be affected if your turnover from self-employment and\/or property exceeds \u00a350,000 per year.<\/p>\n\n\n\n This threshold will reduce to \u00a330,000 from April 2027, and as announced in this year\u2019s Spring Statement, the threshold will drop again to \u00a320,000 in April 2028.<\/p>\n\n\n\n HM Revenue & Customs (HMRC) have already begun notifying those affected based on your 2023-24 Self-Assessment return.<\/p>\n\n\n\n What exactly is changing?<\/strong><\/p>\n\n\n\n Under MTD for ITSA, from April 2026, you will need to:<\/p>\n\n\n\n This new process means tax information is updated more regularly, enabling better management of your tax obligations throughout the year.<\/p>\n\n\n\n How to prepare for Making Tax Digital<\/strong><\/p>\n\n\n\n Here is what you can do now to ensure a smooth transition:<\/p>\n\n\n\n Check if you are affected<\/strong><\/p>\n\n\n\n Determine if your income from self-employment and\/or property exceeds \u00a350,000 per year.<\/p>\n\n\n\n HMRC have already began contacting affected taxpayers recently, but it is beneficial to understand your position early.<\/p>\n\n\n\n Choose appropriate software<\/strong><\/p>\n\n\n\n You must use MTD-compatible software to maintain digital records and submit quarterly updates. If you need advice or assistance choosing the right software, we can help.<\/p>\n\n\n\n Decide when to sign up<\/strong><\/p>\n\n\n\n HMRC offers two sign-up options:<\/p>\n\n\n\n Explore exemptions<\/strong><\/p>\n\n\n\n Some individuals may qualify for exemptions due to age, disability, or lack of access to digital tools.<\/p>\n\n\n\n If you believe an exemption may apply to you, we can assist in assessing eligibility and applying on your behalf.<\/p>\n\n\n\n How we can help<\/strong><\/p>\n\n\n\n Our expert team is here to support you throughout your transition to Making Tax Digital. We offer personalised help to:<\/p>\n\n\n\n Act early and avoid the stress<\/strong><\/p>\n\n\n\n The rules may not take effect until April 2026, but starting your preparation now can reduce stress and ensure you are confidently ready for the transition.<\/p>\n\n\n\n\n
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