What Is

Making Tax Digital?

What Is MTD?

Making Tax Digital for Income Tax Self Assessment is not optional, it’s being rolled out in stages and will affect millions of self-employed individuals and landlords over the next few years.

If you earn income outside PAYE, these changes are likely to apply to you.

Who Is Affected and When?

April 2026

If you are self-employed or earn rental income over £50,000, Making Tax Digital becomes mandatory.

This will affect over 1 million people.

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What You Need To Do

Businesses must keep digital records and use HMRC, compatible software to send updates and final submissions. Preparing early helps; review how you track your income and expenses, move anything paper-based into a digital format, and choose software that meets MTD standards.

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4 Facts About MTD...

Quarterly updates will replace annual reporting

Instead of one tax return a year, income and expenses will be submitted to HMRC every quarter, with a final end-of-year declaration.

Paper records won’t meet the rules

Basic digital spreadsheets are not compliant unless they are connected to approved software. Submissions must feed directly into HMRC through recognised systems.

You must use HMRC-compatible software

Examples of accepted software include Xero, QuickBooks, Sage, and FreeAgent. These platforms connect directly to HMRC and meet MTD requirements.

Digital Records Are Mandatory

All income and expenses must be recorded digitally. Paper records and manual tracking won’t meet the new rules.

Stay In The Loop

Making Tax Digital is changing over time, and keeping up with the latest updates makes everything easier. Follow us on social media for simple breakdowns, reminders, and helpful guides as new information comes out. It’s the easiest way to stay informed without digging through government pages every time something shifts.