Making Tax Digital (MTD) is set to change the way millions of self-employed individuals and landlords manage their tax returns. If you file a Self Assessment tax return, it’s important to understand what’s coming and how you can take steps prepare now standing yourself in good stead for the coming tax year.
Here are the key things to know:
• Who MTD applies to: If you’re self-employed or a landlord with income over £50,000, you’ll need to follow MTD rules from April 2026. For those earning over £30,000, the rules apply from April 2027.
• Digital record-keeping: You’ll need to keep digital records of your income and expenses and use compatible software to submit updates to HMRC.
• Quarterly updates: Instead of one annual return, you’ll need to submit quarterly updates plus an end-of-period statement.
• Spreadsheets aren’t enough: Like with VAT, spreadsheets alone won’t be compliant unless linked to HMRC using bridging software.
• Start preparing now: Even if MTD doesn’t apply to you until 2026, reviewing your systems early means you’ll avoid stress later and may even save time managing your finances.
Even if you’re already confident with your current Self Assessment process, MTD for Income Tax will add new steps so making the switch early can give you peace of mind.
Ready to get started with your MTD journey?
Download our BBKS MTD Checklist to check out the next steps you need to stay compliant, and get in touch if you’d like our support with Self Assessment, VAT, or both.
Making Tax Digital: MTD for Self Assessment – everything you need to know
