Making Tax Digital for Income Tax Has Arrived

The new Making Tax Digital (MTD) for Income Tax regime is now live, marking an important shift in how certain taxpayers will report their income to HMRC. The new regime takes effect from the start of the 2026/27 tax year and applies to self‑employed individuals and landlords who have qualifying income of more than £50,000 per year. HMRC estimates that around 800,000 to 900,000 individuals will be brought into the new system.
 
Under MTD, affected individuals must:
 
🔸 Maintain digital records of income and expenses
🔸 Submit quarterly updates to HMRC using commercial software
🔸 Continue to submit an annual tax return
 
The first quarterly update is due by 7 August 2026. 
 
Although MTD reporting begins during the 2026/27 tax year, a standard tax return will still be required for the 2025/26 tax year, with the filing deadline remaining as 31 January 2027.
 
What to Do Next? 

For those within scope, now is the time to ensure you understand the new digital requirements and how they will affect the way you record and report your income. MTD represents a significant change, and early familiarity with the reporting timetable and digital obligations will help make the transition smoother.