Making Tax Digital is coming — and this time it's for landlords too
For years, Making Tax Digital (MTD) was a VAT thing. Now it's coming for income tax — and if you're a sole trader or a landlord, you're on the guest list whether you fancy it or not.
Here's the timeline, straight from HMRC:
- April 2026 — if your self-employment and/or property income tops £50,000, you're first in the queue
- April 2027 — the £30,000+ crowd joins
- April 2028 — and then £20,000+
So what actually changes?
The big one: the once-a-year tax return is replaced by four quarterly updates plus a final declaration to tidy everything up. You'll also need to keep your records digitally and use MTD-compatible software — think Xero, QuickBooks or FreeAgent, not a shoebox of receipts.
The good news
Once you're set up, it's far less painful than it sounds. Your records stay up to date through the year, you always have a rough idea of what you owe, and the dreaded January scramble basically disappears.
The trick is not to leave it until the last minute. Move to cloud software now, get into the habit, and the deadline becomes a non-event.
This is a general guide rather than personal advice — your start date depends on your figures, so do check with us.
