Everyone's talking about Making Tax Digital. Most of the content is vague accountant-speak.
Here's what's actually changing, who it affects, and what you need to do before 6 April 2026.
What's actually changing
From 6 April 2026, if you're self-employed or earn property income over £50,000, you can't just file one tax return per year anymore.
Instead:
- You submit quarterly digital updates to HMRC
- You keep records digitally (not paper, not unsupported spreadsheets)
- You use MTD-compatible software
The annual declaration still exists. It's not going away. But you're now filing 5 times a year instead of once.
Does it affect you?
The threshold is based on your 2024/25 income — so the return due January 2026 is what HMRC uses to assess you.
- Gross qualifying income over £50,000: affected from April 2026
- £30,000–£50,000: April 2027
- Under £30,000: TBD (expected eventually)
If you're not sure where you land, I built a free 2-minute checker: landolio.com/tools/mtd-readiness-checker
It asks 3 questions and tells you exactly whether you need to act and by when.
What you need to do (if it applies)
- Check your income threshold — use the tool above
- Choose MTD-compatible software — HMRC has a free tool (HMRC's free product), or there's FreeAgent, QuickBooks, Xero. All work fine.
- Sign up through your Government Gateway — you can't just start using the software, you have to register for MTD ITSA with HMRC
- Start keeping digital records — transactions logged in your software from 6 April
You don't need to move your historical records over. Start fresh on 6 April.
The thing most people miss
If you're signing up, do it before 6 April. If you try to sign up after that date and you were supposed to be in from day one, you're technically non-compliant.
HMRC has said there'll be a soft-landing period and they won't penalise people for genuine teething issues. But that's not written into law — it's a verbal commitment. Don't rely on it.
If you earn under £50k
You've got time. But use the next 12 months to:
- Start using some kind of accounting software (free tiers exist)
- Get your income and expense tracking in order
- Check back in September when the £30k threshold becomes clearer
Scrambling in March 2027 when the extension kicks in isn't fun. Trust me.
Built a few free MTD tools at landolio.com if any of this is useful — readiness checker, quarterly tax calculator, software comparison. All free, no account needed.
And if you're preparing for MTD and want a proper checklist + template pack, there's the MTD Readiness Toolkit (£14 with code LAUNCH50 for 50% off this week).
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