After years of delays, Making Tax Digital (MTD) for Income Tax Self Assessment is now firmly on the horizon, and this time it really is happening.

From 6 April 2026, sole traders and landlords with gross income over £50,000 must keep digital records and submit quarterly updates to HMRC using approved software. A further group earning over £30,000 will follow from April 2027, with an additional expansion planned to £20,000 later this decade.

What makes this change significant is not just the quarterly reporting, but the shift in mindset it demands. Many taxpayers are used to dealing with their tax once a year. MTD requires regular engagement, cleaner records, and software adoption. HMRC has confirmed that penalty points will apply for missed or late submissions, meaning compliance can’t be left to the last minute.

For accountants, this represents both a challenge and an opportunity. Practices must educate clients, review pricing models, and ensure systems are scalable. For clients, the benefits can include better cashflow visibility and fewer year‑end shocks—if they are properly supported.

Businesses that leave preparation until early 2026 are likely to struggle. The most successful transitions we are seeing involve early software onboarding, quarterly bookkeeping routines, and clear client communication.

Key takeaway: If you’re self‑employed or a landlord approaching the £50,000 threshold, now is the time to prepare—not next year.