From 6 April 2026, self-employed people earning over £50,000 must keep digital records and submit quarterly updates to HMRC. No more annual returns for them.
By April 2027, the threshold drops to £30,000.
If you're a freelance developer billing over £50k, this affects you in 19 days.
What actually changes
Before MTD:
- Keep records however you like
- File one annual self-assessment return
- Use spreadsheets, shoeboxes, whatever
After MTD (6 April 2026):
- Must use HMRC-compatible software
- Submit quarterly updates (every 3 months)
- Final declaration at year end
- All records must be digital from day one
The penalties
HMRC's new points-based penalty system:
- Late submission = 1 point
- Accumulate enough points (4 for quarterly) = £200 penalty
- Points don't expire for 24 months
What software do you need?
Free options exist:
- HMRC's free tool — basic but functional
- Spreadsheets + bridging software — use your existing setup
Paid options (£10-30/month):
- FreeAgent — popular with freelancers, MTD-ready
- Xero — more features, steeper learning curve
- QuickBooks — middle ground
I built a free MTD Readiness Checker that tells you if this affects you and what you need to do.
Also: MTD Penalty Calculator and MTD Cost Calculator — both free.
Don't panic
If you're under £50k this year, you have until April 2027. Use this year to get your digital records sorted.
If you're over £50k — start now. 19 days isn't long to choose software, migrate records, and understand quarterly deadlines.
Everything at landolio.com/sale is 50% off this week with code LAUNCH50 — including the MTD Readiness Toolkit (£7 instead of £14).
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