Making Tax Digital (MTD) is HMRC’s long-term plan to modernise the UK tax system. It’s already in place for VAT and, from April 2026, it will start rolling out for self-employed individuals and landlords with income above £50,000.
What does this mean for me – and will it change how I work with my accountant?
The good news is: with the right support, very little will feel different. Here’s a breakdown of what will change under MTD, and what won’t.
Countdown to MTD for Income Tax
Deadline: April 2026
That’s less than 7 months away.
While that might sound like plenty of time, MTD preparation takes longer than most people expect. Choosing the right software, setting up digital records, and adjusting processes should all be done well before the deadline – ideally during 2025.
What Will Change
- More frequent reporting
Landlords and sole traders will need to submit quarterly updates to HMRC, instead of one annual Self Assessment return. That means information has to be kept more up to date.
- Mandatory digital record-keeping
Paper records and basic spreadsheets won’t cut it. HMRC requires digital records to be kept in compliant software like Xero.
- Tighter deadlines
Quarterly updates, end-of-period statements and a final declaration all carry strict deadlines. Missing them could mean penalties.
- Technology at the core
MTD is built on software. If you’re still managing your accounts outside of Xero (or another recognised platform), that will have to change.
What Won’t Change
- Your need for an accountant
MTD doesn’t replace the need for advice — in fact, it makes it even more important to have someone keeping an eye on the bigger picture.
- Our support for you
At The Accountancy Office, we already manage digital records for all of our clients. We’ll continue to take care of the submissions and make sure everything is filed on time.
- Your relationship with HMRC
You won’t suddenly have to deal with HMRC more often. We’ll still be your first point of contact, handling the reporting on your behalf.
- The bigger financial picture
Tax planning, profit extraction, cash flow, and your overall business strategy remain exactly as important as ever. MTD doesn’t change that.
The Bottom Line
Making Tax Digital is a change in process, not in purpose. It’s about how HMRC receives information, not about reinventing the rules of tax. With us as your accountant, you won’t need to worry about the deadlines or the tech – we’ll handle the transition and keep things running smoothly.
Don’t wait until 2026. Get ahead of MTD now so that by the time the deadline arrives, you’re already running smoothly.
Book a call with us today and we’ll walk you through what MTD means for your situation.
—–
Book a call link: https://calendly.com/accountancyoffice/makingtaxdigital