Making Tax Digital is here!
Making Tax Digital (MTD), the biggest change in income tax reporting has finally arrived and if you are required to comply, your first quarterly return must be submitted by 7 August 2026. For those of you finding it overwhelming (you are not alone) we have provided a simple guide.
Will MTD apply to me from April 2026?
Are you:
- Sole Trader
- Landlord
- Both?
Was your combined gross income over £50,000 in 2025/25?
I need to comply, but what does that mean?
From April 2026 you must:
- Keep digital records
- Submit four quarterly updates plus a final declaration to HMRC
- Use MTD-compatible software to make these filings
Step by Step guide:
- Choose your MTD compatible software
- Register for MTD with HMRC – this will not be done automatically
- Use your software to record income and expenses
- Submit your quarterly returns (the first is due by 7 August 2026)
- File your Final Declaration and pay tax by 31 January 2027.
We can help with all aspects of MTD from registering at HMRC to maintaining digitised records for you. Please contact us for more information.
* The threshold reduces to £30,000 from April 2027 and £20,000 from 2028 so you will need to closely monitor your turnover.