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 for self-employed individuals and landlords will start to apply from April 2026 if they have business and/or property income (i.e. total takings, not net profits) of more than £50,000 per annum. The system requires digital record-keeping and quarterly updates to HMRC, with the first such update due by 7 August 2026.

Last month, HMRC issued a press release confirming that the changes will affect 860,000 individuals. They are keen to encourage people to take action now and are highlighting the benefits of spreading tax compliance administration more evenly throughout the tax year.

If you are one of the 860,000 individuals moving into the new regime from April 2026, HMRC are also keen to stress that a normal annual tax return will still be required for the tax year to 5 April 2026. This means that, in addition to providing HMRC with quarterly updates during the tax year for the period to 5 April 2027, your annual 2025/26 tax return will still need to be filed by 31 January 2027.

Please do get in touch if we are not already planning your transition into this new digital regime.