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The UK tax system is undergoing a major transformation, and it is closer than you might think. From April 2026, Making Tax Digital (MTD) will become mandatory for many individuals with self-employment or property income. If you are not yet prepared, now it is the perfect time to start.

Here’s everything you need to know to stay compliant and how we can support you every step of the way.

What Is Making Tax Digital?

Making Tax Digital (MTD) is a UK government initiative aimed at modernising the way taxes are reported and managed. The goal is to make tax administration efficient, accurate, and easier for taxpayers to get right.

Under MTD, qualifying individuals will be required to:

• Keep digital records of their income and expenses.
• Use MTD-compliant software to manage and submit tax data.
• Submit updates to HM Revenue and Customs (HMRC) on a quarterly basis, moving away from the traditional annual tax return.

The shift aims to make tax administration:

• More accurate (fewer manual errors)
• More efficient (less paperwork)
• More transparent (real-time insight into your tax position)

Key Changes for qualifying individuals:

• Income Thresholds: From April 2026, individuals with a gross income from self-employment and/or property exceeding £50,000 will need to comply with MTD for Income Tax. This threshold will reduce to £30,000 in April 2027 and £20,000 in April 2028.
• Quarterly Updates: Instead of submitting a single annual tax return, you’ll provide quarterly updates to HMRC, offering a more real-time view of your tax position.
• Final Declaration: At the end of the tax year, a final declaration will be submitted, consolidating the quarterly updates and any adjustments.

What’s Changing Under MTD?

Feature	Current System	Under MTD
Submissions	One annual tax return	Four quarterly updates + one final declaration
Record keeping	Paper/digital hybrid	Fully digital
Submission method	HMRC portal or accountant/ agents	Accountants/ Agents or MTD-compatible software

Quarterly Updates

You will send financial summaries to HMRC every 3 months. These reports include:

• Total income
• Allowable business expenses
• Any other relevant adjustments

These are not tax bills, they give HMRC (and you) an up-to-date view of your tax position.

Final Declaration

At year-end, you will submit a Final Declaration, replacing the traditional Self-Assessment. This confirms all your figures, adjustments, and any additional income (like bank interest). This step is where tax is officially calculated and paid.

Benefits of MTD:

Switching to MTD can bring tangible advantages, especially for small businesses and landlords.

• Efficiency: Streamlines the tax process, reducing the time spend on manual calculations and paperwork.
• Accuracy: Digital records help minimise errors, leading to more accurate tax submissions.
• Real-time insights: Provides a clearer picture of your financial standing, aiding in better financial planning.

Think of MTD not just as a legal requirement, but as a chance to modernise your finances and streamline your admin.

How we can assist:

Navigating MTD can seem daunting, but you’re not alone. Our team is here to support you through the transition:

• Ongoing Support: Providing continuous support to ensure smooth quarterly submissions and compliance.
• Final declaration and quarterly reports…

Ready to Embrace MTD?

Getting ahead of the MTD requirements can save you time and reduce stress in the long run. If you are unsure about where to start or need guidance, don’t hesitate to reach out.

We are here to make the transition as seamless as possible.

For further information, please contact our dedicated MTD Team by email at mtd@gtn.uk or call our Client Service Team on 0207 100 2126.