Making Tax Digital (MTD) is Coming – Are you Ready?

From April 2026, UK Income Tax reporting is changing for selfemployed individuals and landlords.

Understand what’s changing, when it applies, and how it fits alongside your annual tax return.

WHAT IS MAKING TAX DIGITAL (MTD)?

Making Tax Digital (MTD) for Income Tax is the biggest change to the UK personal tax system in over 30 years. From April 2026, selfemployed individuals and landlords will be required to keep digital records and submit information to HMRC on a quarterly basis.

While MTD is designed to modernise tax reporting, understanding when it applies, what is required, and how it interacts with the annual tax return will depend on individual circumstances.

WHO IS AFFECTED?

MTD will be introduced in phases, based on your total qualifying income from selfemployment and/or UK property (before expenses):

• From April 2026

Individuals with qualifying income over £50,000

• From April 2027

Individuals with qualifying income over £30,000

• From April 2028

Individuals with qualifying income over £20,000

• Nonresident individuals

Not required to join MTD before April 2027

If you are unsure whether your income meets these thresholds, professional confirmation is recommended.

WHAT IS CHANGING UNDER MTD?

Under Making Tax Digital for Income Tax:

• Digital records must be maintained using HMRC recognised software

• Quarterly updates must be submitted to HMRC (These are summary updates, not tax returns)

• An annual tax return will still be required to be filed after the end of the tax year

• Income Tax payment deadlines remain unchanged, including the 31 January payment date

Where both selfemployment and property income exist, separate records and quarterly updates are required for each income source.

QUARTERLY FILING DEADLINES

Quarterly updates are submitted according to the standard taxyear reporting periods:

Quarter	Deadline
6 April – 5 July	7 August
6 April – 5 October	7 November
6 April – 5 January	7 February
6 April – 5 April	7 May

WHY HMRC IS INTRODUCING MTD

HMRC’s objective is to improve accuracy and reduce errors in the tax system. When implemented correctly, MTD is intended to:

• Reduce unintentional errors and corrections

• Keep records accurate and accessible throughout the year

• Improve visibility over income and expenses

• Provide greater awareness of inyear tax positions

• Reduce pressure at the year end

MTD CLIENT CHECKLIST

Use the checklist below to assess whether MTD may apply to you:

• Check whether your qualifying income meets HMRC’s MTD thresholds

• Identify your correct MTD start date (2026 / 2027 / 2028)

• Ensure your records can be kept digitally using approved software

• Prepare for quarterly updates to HMRC

• Remember that an annual tax return is still required

• Keep income and expenses organised throughout the year

• Use one consistent digital system for recordkeeping and reporting

OUR ROLE

MTD changes how and when tax information is reported. As your tax agents, Expat UK Tax provides continuity between quarterly MTD reporting and the annual tax return, ensuring information is managed consistently and accurately.

We can support you by:

• Confirming your MTD status and correct start date

• Managing all quarterly submissions to HMRC

• Preparing and filing your annual tax return

• Acting as your authorised agent in dealings with HMRC

ARE YOU UNSURE IF MTD APPLIES TO YOU?

MTD will affect many individuals over the coming years, but the timing and impact will vary depending on your circumstances.

If you are uncertain whether MTD applies to you, or how it fits with your existing tax arrangements, please contact Expat UK Tax for further guidance.

Expat UK Tax - MTD 2026.pdf

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