What You Need To Do – Making Tax Digital Check

What You Need To Do for Making Tax Digital (2026 Guide)

What You Need To Do for Making Tax Digital

Making Tax Digital (MTD) is changing how self-employed people and landlords report income to HMRC. From April 2026, many people will need to keep digital records and submit updates throughout the year instead of just one annual tax return.

If your income from self-employment and property is over £50,000, you are expected to join from 6 April 2026. :contentReference[oaicite:0]{index=0}

Step 1: Check if Making Tax Digital applies to you

You will need to use Making Tax Digital if:

You are self-employed, a landlord, or both
Your total qualifying income is over £50,000
You currently complete a Self Assessment tax return

HMRC uses your previous tax return (for example, 2024–2025) to decide if you need to join from April 2026. :contentReference[oaicite:1]{index=1}

If your income is below £50,000, you may still need to join later:

Over £30,000 → from April 2027
Over £20,000 → from April 2028

These thresholds are being introduced gradually to bring more people into the system over time. :contentReference[oaicite:2]{index=2}

Step 2: Understand what changes

Making Tax Digital replaces the traditional “once-a-year” tax return process with a more regular system.

You must keep digital records of income and expenses
You must send quarterly updates to HMRC
You still submit a final yearly tax return

This means you will typically send 4 updates per year, plus a final submission. :contentReference[oaicite:3]{index=3}

Step 3: Choose how you will keep records

To comply with MTD, you must use a digital system. This can be:

Accounting software (e.g. apps or bookkeeping tools)
A spreadsheet combined with bridging software

Paper records alone are not enough if MTD applies to you.

You will need software that connects to HMRC to send your updates. :contentReference[oaicite:4]{index=4}

Step 4: Get ready before April 2026

If you are likely to be affected, it’s best to prepare early.

Review your income from self-employment and property
Decide how you will keep digital records
Start organising your expenses properly
Consider testing your system before deadlines

You can also sign up voluntarily before you are required to use MTD if you want to get used to the system early. :contentReference[oaicite:5]{index=5}

Step 5: Sign up for Making Tax Digital

If you are required to join from April 2026, you should sign up in advance.

HMRC may contact you, but even if you do not receive a letter, you are still responsible for complying if you meet the criteria. :contentReference[oaicite:6]{index=6}

You can sign up here:

👉 Sign up for Making Tax Digital on GOV.UK

Common mistakes to avoid

Waiting until the last minute to prepare
Assuming HMRC will always contact you
Relying on paper records only
Not understanding your qualifying income

What to do next

If Making Tax Digital applies to you, the next step is to:

Confirm your position based on your latest tax return
Choose a digital record-keeping method
Prepare for quarterly submissions

👉 Learn how to avoid penalties

This page is a general guide based on current HMRC rules and thresholds. Always confirm your individual situation if unsure.