We are continuing to work with a number of our clients as they prepare for Making Tax Digital (MTD) for Income Tax. This new regime will apply from April 2026 to self-employed individuals and landlords whose business and/or property income (that is, total takings rather than profit) exceeds £50,000 per year.
Under the new system, individuals will be required to keep digital records and submit quarterly updates to HMRC. The first quarterly update will be due by 7 August 2026.
HMRC recently confirmed that around 860,000 individuals will be brought into the regime from April 2026. They are encouraging taxpayers to begin preparing now and are emphasising the benefits of spreading tax administration across the year, rather than leaving everything until the annual tax return deadline.
If you fall within the group affected from April 2026, it is important to remember that the normal Self Assessment process will still apply for the current tax year. Your tax return for the year ended 5 April 2026 must still be submitted by 31 January 2027.
This means that during the 2026/27 tax year you will be providing HMRC with quarterly updates under MTD, while also completing your final traditional tax return for 2025/26.
If we are not already working with you to plan your transition into this new digital regime, please do get in touch and we will be happy to support you.