How to prepare for Making Tax Digital

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Major tax reporting changes are coming – are you prepared?

From April 2026, anyone who is self-employed, a sole trader, or a landlord will face new legal requirements for how they report and manage their tax if their income exceeds £50,000.

In April 2027, the threshold will reduce to £30,000 before dropping to £20,000 by April 2028.

This will mean that over 900,000 additional people will be legally required to:

  • Keep digital records
  • Submit quarterly updates to HMRC
  • Use approved software to stay compliant

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What is Making Tax Digital and what does it mean for you?

Making Tax Digital (MTD) is the Government’s plan to overhaul the UK’s tax system by requiring more frequent, digital tax reporting.

The goal? Fewer errors, faster reporting, and improved transparency.

But for you, it means:

  • New processes to adopt
  • New software to choose and integrate
  • More frequent deadlines to stay on top of

Don’t risk being non-compliant. Download our free guide for more information.

Download-our-free-guide

When will Making Tax Digital affect you?

As the threshold is set to reduce even more over the next few years, it is important to know how and when the changes will affect you.

The changes will eventually see 900,000 more sole traders, landlords, and self-employed individuals pulled into MTD.

The current Self-Assessment returns will be replaced by MTD, so early understanding and planning can keep you compliant.

Don’t get caught out by future changes. Download our road map.

Download-mtd-roadmap

How can we help you?

You don’t need to handle this alone. Our expert team can:

  • Confirm whether and when MTD applies to you
  • Help you choose and set up compatible software
  • Train you or your team in digital record-keeping
  • Manage your quarterly submissions
  • Assist with applying for exemptions if eligible

The Government is fully committed to enhancing scrutiny and mitigating fraud, so may impose further changes to tax returns in the future.

Early planning can help you stay ahead of changes so you can maintain compliance.

Our expert team is on hand to assist you every step of the way, and make sure that you are ready for the additional paperwork that comes with MTD.

Keep compliant now, and in the future, by speaking to our team today.

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Ready to take the next step in your financial journey?

Contact us today to find out how FFT can support you. Whether you need help with your personal finances or business accounting, our friendly and open-minded team is here to assist you.

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Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales

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