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Making Tax Digital: What’s Changing from April 2026?

From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) officially begins its phased rollout. This marks a significant shift in how self-employed individuals and landlords report income to HMRC.

👥 Who's Affected in 2026?

Starting in April 2026, self-employed people and landlords with a combined gross income of over £50,000 from self-employment and property income will be required to comply with MTD rules.

  • This includes individuals earning over £50,000 in total from self-employment, UK property, or overseas property.

  • If your income is under £50,000, you’re not affected until April 2027 (threshold drops to £30,000), and those earning under £30,000 will be brought in later (currently planned for April 2028).

🧾 What You'll Need to Do

If you’re affected, from April 2026 you must:

  1. Maintain digital records using MTD-compatible software.

  2. Send quarterly updates to HMRC summarizing your business/property income and expenses.

  3. Submit a final end-of-year declaration, replacing the traditional Self Assessment return.

Example: Instead of one Self Assessment tax return in January 2027 for the 2025/26 tax year, you’ll start submitting four quarterly updates for the 2026/27 tax year beginning April 2026.

🛠️ What's Simplified?

HMRC has made some changes to streamline MTD:

  • No separate End of Period Statement (EOPS) – everything is combined into the final declaration.

  • Quarterly updates are cumulative, meaning errors can be corrected in later submissions.

  • You can continue to use cash basis accounting (which will be the default for many businesses under MTD).

🔍 Key Dates for 2026 Date

  • Requirement - 6 April 2026 - MTD begins for £50k+ earners

Early August 2026 - First quarterly update due (covering Apr–Jun)

✅ How to Prepare Now

  • Review your total income: Are you above £50k? If so, MTD applies to you from April 2026.

  • Choose compatible accounting software: Popular options include Xero

  • Talk to your accountant - we will be contacting our affected clients to advise them in due course.



 

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