From 6 April 2026, self-employed people earning over £50,000 must:
- Keep digital records of all income and expenses
- Submit quarterly updates to HMRC via MTD-compatible software
- File an End of Period Statement and Final Declaration digitally
This replaces the annual self-assessment return for those above the threshold.
Who's affected right now?
Sole traders and landlords with qualifying income over £50,000. That's about 860,000 people.
From April 2027, the threshold drops to £30,000. Eventually it'll cover everyone.
What software do you need?
HMRC maintains a list of compatible software. The main options:
- FreeAgent — popular with UK freelancers, from £14.50/month
- Xero — more powerful, from £15/month
- QuickBooks — good all-rounder, from £12/month
- HMRC free tool — basic but free, expected to cover simple cases
What you need to do in the next 21 days
- Check if MTD applies to you — I built a free MTD Readiness Checker that tells you in 2 minutes
- Choose your software — sign up for a trial now, don't wait until April
- Set up digital records — import your existing records or start fresh
- Understand quarterly deadlines — your first submission is due ~August 2026
What if you earn under £50k?
You're not affected yet. But start keeping digital records anyway — the threshold is dropping. Better to be ahead than scrambling next year.
Free tools
- MTD Readiness Checker — 2-minute assessment
- MTD Penalty Calculator — see what late submissions cost
- MTD Cost Calculator — estimate your annual compliance costs
- Business Expense Tracker — free digital expense tracking
All free, no sign-up, browser-based.
Anyone else feeling unprepared for this? What software are you going with?
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