Making Tax Digital for Income Tax Self Assessment kicks in 6 April 2026. That's tomorrow.
If you're a sole trader or landlord earning over £50,000 and you haven't set up yet — don't panic. But do act today.
What actually happens on 6 April?
From this date, HMRC expects you to:
- Keep digital records of income and expenses
- Submit quarterly updates through MTD-compatible software
- File an End of Period Statement and Final Declaration
The first quarterly update won't be due until August 2026, so you have breathing room. But your record-keeping needs to be digital from day one.
The 3-hour Sunday fix
Here's what I'd do today if I were starting from zero:
1. Check if you're actually in scope
If your gross income was over £50,000 in 2024/25, you're in. Under that? You've got until April 2027 (£30k threshold) or later.
Use a free threshold checker like the one at landolio.com/tools/mtd-threshold-checker to confirm.
2. Pick your software
You don't need expensive accounting software. HMRC has a list of compatible software. Free options exist.
What matters: it connects to HMRC's API and lets you categorise income/expenses digitally.
3. Set up your digital records
Even a spreadsheet works if your software can import it. The key is: no more shoebox of receipts as your primary record.
4. Don't forget the penalties
HMRC's new points-based penalty system means:
- Late submission = 1 point per quarter
- Hit the threshold (4 points for quarterly filers) = £200 fine
- Late payment = interest from day 1, then escalating penalties
It's not catastrophic on day one, but it compounds fast.
If you want a head start
I put together an MTD Readiness Toolkit that bundles a compliance checklist, quarterly submission calendar, expense categorisation templates, and a penalty calculator. It's specifically for UK freelancers who want to get this sorted without hiring an accountant for setup.
There's also a free day rate calculator and tax estimate tool if you're trying to figure out your numbers.
The honest truth
MTD isn't as bad as the headlines make it sound. The quarterly updates are basically "here's what I earned, here's what I spent" — which you should be tracking anyway.
The people who'll struggle are the ones who do nothing until August and then try to reconstruct 4 months of records from bank statements.
Start today. Even 30 minutes of setup puts you ahead of most.
I build free tools and resources for UK freelancers at landolio.com. No affiliation with HMRC or any accounting software.
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