How to Prepare for Making Tax Digital (MTD) in 2026

The tax world is changing, landlords and self-employed individuals need to prepare for Making Tax Digital (MTD), launching 6 April 2026. Here’s your guide to staying compliant and stress-free.

What Is MTD?

MTD for Income Tax requires self-employed and landlords with business or property income above £50,000 (£30,000 from April 2027) to submit quarterly digital updates of income and expenses, plus an annual End of Period Statement. It replaces parts of the traditional Self Assessment process, ensuring real-time tax reporting. Any tax liability due will need to be paid by the normal payment deadline (31 January 2026).

Why Prepare Now?

MTD means more frequent reporting, increasing your administrative load. Non-compliance risks penalties, and the Basis Period Reform (2024/25) already aligns profits to the tax year, making now the perfect time to adapt. Early preparation saves time and avoids last-minute scrambles.

Steps to Get MTD-Ready

• Choose MTD-Compatible Software: Use tools like FreeAgent, Xero, or QuickBooks for seamless updates.
• Go Digital with Records: Store receipts and invoices digitally to track expenses (see our expenses guide).
• Master Quarterly Updates: Record income/expenses in real-time for accurate submissions.
• Budget for Costs: Software subscriptions cost £10–£30/month—plan ahead.

How Talwar Accountants Can Help

MTD can feel overwhelming, but we’re here to simplify it. Our experts offer tailored software setup, compliance checks, and ongoing support to keep you HMRC-ready.

Get Ahead with Talwar Accountants

Don’t wait for MTD to catch you off guard. Book a free consultation with our advisors to prepare for 2026 today!

Kind regards,
Jagdeep Singh ATT
Talwar Accountants
https://www.talwaraccountants.com/contact