The biggest change to the UK tax system in nearly 30 years has arrived. From 6 April 2026, Making Tax Digital (MTD) for Income Tax Self Assessment is live, and it affects sole traders and landlords with qualifying income above £50,000.
If that's you, don't worry, your client manager would have already been in touch. But, just so you're aware, the annual Self Assessment tax return is no longer your only obligation. You'll now need to maintain digital records, use HMRC-approved software, and ensure a summary of your income and expenditure is submitted to HMRC every quarter with a final year-end declaration on top.
The good news? HMRC has confirmed that no penalties will be issued for late quarterly updates during the 2026/27 tax year as the system beds in. So there's a little breathing room. But that doesn't mean you should put it off.
If your income is between £30,000 and £50,000, don't switch off just yet. Those earning over £30,000 will be brought into scope from April 2027, so it's worth starting to prepare now.