From April 2026, HMRC will require self-employed individuals and landlords to follow Making Tax Digital (MTD) rules.
- You must keep digital records
- You must submit quarterly updates to HMRC
- Annual tax reporting alone will no longer be enough
What is Making Tax Digital (MTD)?
Making Tax Digital is a UK government initiative designed to make tax reporting more efficient and accurate.
Instead of submitting one tax return per year, you will:
- Record your income and expenses digitally
- Send updates to HMRC every 3 months
- Submit a final year-end declaration
Who Needs to Follow MTD from April 2026?
From April 2026, MTD will apply to:
- Self-employed individuals
- Landlords earning rental income
- Those earning above the HMRC threshold (typically £50,000+)
How Will Tax Reporting Change?
Before MTD: One tax return per year
After MTD:
- 4 quarterly updates
- 1 final declaration
Total: 5 submissions per year instead of 1
What Are Quarterly Updates?
Quarterly updates are summaries of your income and expenses.
They are submitted every 3 months using MTD-compatible software.
What You Need to Do Now
- Start keeping digital records
- Use approved accounting software
- Track income and expenses regularly
- Avoid leaving everything until year-end
Benefits of Making Tax Digital
- Better financial visibility
- Fewer errors in reporting
- Easier tax management
- Reduced risk of penalties
Common Mistakes to Avoid
- Waiting until April 2026 to prepare
- Not using compatible software
- Poor record keeping
- Missing quarterly deadlines
FAQ
What is Making Tax Digital (MTD)?
Making Tax Digital is a UK government system requiring taxpayers to keep digital records and submit tax updates quarterly.
When does MTD start for self-employed people?
MTD will apply from April 2026 for self-employed individuals and landlords meeting the income
threshold.
Do I still submit a yearly tax return under MTD?
You will submit quarterly updates plus a final year-end declaration instead of a single annual return.
Do I need special software for MTD?
Yes. You must use HMRC-approved software to keep records and submit updates digitally.
Conclusion
The introduction of Making Tax Digital in April 2026 is a major change for self-employed individuals
and landlords in the UK.
Preparing early will help you stay compliant, avoid penalties, and manage your finances more
efficiently.
Need Help Getting Ready for MTD?
P & K Group helps you transition smoothly to digital tax reporting with expert guidance and support.