Latest News About Making Tax Digital

Here are the latest developments on Making Tax Digital (MTD) in the UK, with a focus on 2026–2028 timelines and how they may affect you in London.

• Phase-in for self-employed and property income starts April 2026. If your gross income from self-employment or property letting is above £50,000, you’ll need to keep digital records and submit quarterly updates using HMRC-approved software from April 2026. This is the first major milestone in the expanded MTD for income tax.[1][2]
• Thresholds step down over time. From April 2027, the rule expands to those with annual gross income above £30,000, and from 2028, the scheme covers those above £20,000 (with exemptions still applying for smaller incomes). The intention is to phase in gradually to give taxpayers time to prepare.[4]
• Digital records and quarterly updates. Under these changes, you’ll be recording income and expenses digitally and submitting quarterly updates to HMRC, in addition to the annual self assessment tax return. Software that can link transactions to HMRC categories will be required, and payments/returns remain due on the usual deadlines (with quarterly updates aligned to the tax year).[3][1]
• Penalties and preparation. HMRC has indicated changes to penalties will be introduced, with reforms that aim to be proportionate to the timeliness and accuracy of submissions. There has been emphasis on registering and preparing ahead of deadlines to avoid penalties as the regime becomes mandatory for more taxpayers.[2][1][3]
• Readiness and guidance. HMRC guidance and official pages emphasize enrolling early to ensure you are ready and to take advantage of any early adopter or “soft launch” options where available. Public guidance pages and HMRC’s own updates are the best sources for step-by-step preparation and software compatibility checks.[1][2]

Illustrative example

• If you’re a London-based sole trader with gross self-employment income of £55,000, you would start making digital records and quarterly submissions from April 2026, using compatible software, and you would continue to file your annual self assessment as before, with the new quarterly rhythm. This transition aims to reduce errors and streamline tax management.

What you can do now

• Identify HMRC-approved software providers and check compatibility with your current accounting setup.
• Start digitising records (invoices, receipts, expenses) to build the habit of quarterly updates.
• Check HMRC’s official Making Tax Digital for Income Tax pages for your exact deadline based on your income level and for any transitional relief or exemptions that may apply to your situation.
• If you rent out property or have self-employment income, consider speaking with an accountant or tax adviser who is proficient with MTD requirements to ensure a smooth transition.

If you’d like, I can tailor these notes to your exact income, location in London, and whether you’re self-employed, a landlord, or both, and I can help outline a concrete onboarding plan with compliant software options. Additionally, I can provide a concise timeline and a checklist you can reuse.