Making Tax Digital (MTD) for Income Tax officially came into effect from 6 April 2026 for many self-employed individuals and landlords earning over £50,000 in the 2024/25 tax year.

The new system changes how income and expenses are reported to HMRC, moving away from the traditional once-a-year tax return approach. Instead, affected taxpayers are now required to maintain digital records and submit quarterly updates using HMRC-compatible software.

For those already within the scheme, the first quarterly submission deadline for the 2026/27 tax year is 7 August 2026.

Who Will Be Affected Next?

The next phase of MTD for Income Tax is already approaching.

If your total gross income from self-employment and/or property exceeds £30,000 during the 2025/26 tax year, you are expected to join the MTD regime from April 2027.

It’s important to note that this does not mean paying tax four times per year. However, it does mean more regular reporting and keeping your records updated throughout the year rather than dealing with everything at year-end.

Why Preparing Early Matters

Getting organised now can make the transition far easier. Choosing the right accounting software, understanding the reporting requirements, and putting efficient bookkeeping processes in place can help reduce stress and keep you fully compliant.

At Harris Lacey and Swain, we’re already helping clients prepare for the changes and ensuring they have the right systems and support in place ahead of the deadlines.

If you believe MTD for Income Tax may apply to you from April 2027, our team would be happy to guide you through the next steps.