Making Tax Digital Deadline Looms For Thousands Of Businesses And Landlords
David Chismon, partner at Saffery
With just weeks to go until the next major phase of Making Tax Digital (MTD) comes into force, chartered accounting and business advisory firm, Saffery, is warning that many self-employed individuals and landlords are unprepared for one of the biggest changes to the UK tax system in a generation.
Originally announced in 2015 as part of a wider drive to modernise tax administration, MTD requires taxpayers to keep records digitally and submit information to HM Revenue & Customs (HMRC) using approved software. Whilst its introduction has been gradual, April 2026 marks a significant turning point with the rollout of MTD for Income Tax.
From April 2026, sole traders and landlords with combined annual business or property income of more than £50,000 will be required to comply with MTD for Income Tax. The regime will expand further in April 2027 to those earning over £30,000, and again in April 2028 to those individuals with income above £20,000. This will bring thousands more taxpayers into scope, particularly across regions with high levels of self-employment and property ownership.
David Chismon, partner at Saffery in Bournemouth, said, “The scale of the change is still being underestimated. MTD has been talked about for so long that it’s easy for people to assume it will be delayed again, but April 2026 is just a few weeks away. For those affected, this isn’t a minor tweak to the system, it’s a fundamental change in how and when information is reported to HMRC.”
Under MTD for Income Tax, taxpayers will be required to submit quarterly digital updates showing cumulative income and expenses, followed by a single annual declaration at the end of the tax year. Whilst the timing of tax payments will not change, the level of ongoing interaction with HMRC will increase significantly.
MTD has applied to all VAT-registered businesses since April 2022. However, income tax presents a bigger challenge particularly for individuals who still rely on paper records, spreadsheets or an annual rush to prepare their accounts.
David added, “There are exemptions for some groups, including the digitally excluded, but for most people the direction of travel is clear. The key is to act now because time is quickly running out. Moving to digital record-keeping and MTD-compatible software takes time, but it also offers lots of benefits such as better cash-flow visibility and more timely and accurate financial information.
“Whilst HMRC has ruled out extending MTD to corporation tax in the near future, income tax reform remains firmly on track. For those affected, the message is simple: the deadline is fast approaching.”