The introduction of Making Tax Digital (MTD) for income tax is now underway. This marks the start of the new 2026/27 tax year regime for self-employed individuals and landlords with business and/or property income (i.e. total takings, not net profits) exceeding £50,000 per annum. MTD requires digital record-keeping alongside quarterly updates to HMRC, with the first update due by 7 August 2026.

The final MTD Regulations were laid before Parliament on 24 March 2026.

If you are among the 860,000 individuals entering the new regime, HMRC are also keen to emphasise that a standard annual tax return will still be required for the 2025/26 tax year. This means that, in addition to submitting quarterly updates to HMRC for the year ending 5 April 2027, your annual 2025/26 tax return must still be filed by 31 January 2027.

We have been supporting our clients with the transition to MTD. Please do get in touch if we are not already assisting you with your move to this new digital regime.