Making Tax Digital: Are You Ready?

The rollout of Making Tax Digital (MTD) for Income Tax is one of the biggest changes to the UK tax system in recent years.

From April 2026, self-employed individuals and landlords with annual qualifying income over £50,000 will be required to comply with MTD rules. From April 2027, the threshold will reduce to £30,000, bringing even more taxpayers into the regime.

Under MTD, businesses and landlords must keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional approach of preparing records only at year-end.The aim of the initiative is to improve accuracy, reduce reporting errors, and make tax administration more efficient. However, it also means that many taxpayers will need to review their current bookkeeping processes and ensure they are prepared for the transition.

With the first phase approaching, now is a good time to understand how the new requirements may affect you and what changes may be needed to stay compliant.