After years of discussion, delays, and preparation, Making Tax Digital (MTD) for Income Tax is finally becoming a reality. From 6 April 2026, the UK tax system moves further into the digital era. Many self-employed individuals and landlords will need to change the way they keep records and report income.

If you have been hearing about MTD for years and wondering whether it will really happen, the answer is now clear: the new rules are arriving very soon. And no, it is not always easy to implement without proper preparation.

Who will need to comply first?

The first phase of MTD for Income Tax begins on 6 April 2026.

You will likely need to comply if:

• You are a sole trader or landlord
• You are already registered for Self Assessment
• Your gross income from self-employment or property is above £50,000

Further phases will follow:

• April 2027: threshold reduces to £30,000
• April 2028: expected extension to £20,000

This means many more taxpayers will gradually enter the digital reporting system. Let our experts in Elaga Accountancy to explain the change for you, no difficult jargon in plain English, without the mumbo, jumbo.

What will change under MTD?

MTD changes the traditional annual tax reporting model. Instead of submitting just one Self Assessment return each year, under MTD system taxpayers will need to follow a more structured digital process. 

Key requirements include:

1. Digital record keeping
Income and expenses must be recorded digitally rather than using manual records.

2. Quarterly updates
Instead of waiting until the end of the year, you will submit updates every quarter summarising your income and expenses.

Typical quarterly deadlines will be:

• 7 August
• 7 November
• 7 February
• 7 May

3. End-of-year final declaration
At the end of the tax year, a final declaration confirms your tax position.

For many taxpayers, this means five interactions with the tax system each year instead of one.

Why preparation matters

Many people assume MTD is simply about buying software. In reality, the bigger challenge is changing how records are maintained throughout the year.

Without proper systems, businesses may face:

• missing transactions
• inconsistent records
• rushed quarterly submissions
• higher risk of errors

A structured bookkeeping process is essential. Good workflows reduce the need for corrections later and make quarterly reporting much smoother.

What should you do now?

If you expect to fall within the MTD rules soon, the best approach is to start preparing early.

Some practical steps include:

Review your income level
Check whether your self-employment or property income exceeds the relevant threshold.

Move towards digital bookkeeping
Keeping accurate digital records throughout the year will make quarterly updates far easier.

Plan your reporting process
Quarterly submissions require discipline and consistent record keeping.

Speak with a professional accountant
Early advice can help you avoid mistakes and ensure your records meet digital requirements.

The reality of MTD

MTD has been planned for many years, but the transition is still a major change for many taxpayers. For businesses that are not prepared, quarterly reporting can quickly become stressful.

However, with the right systems and guidance, it can also bring benefits such as:

• clearer financial visibility
• fewer year-end surprises
• better financial management during the year

Need help preparing for MTD?

If you are a sole trader or landlord and think the upcoming rules may apply to you, now is the right time to review your records and reporting process.

Our accounting service helps clients prepare for Making Tax Digital, organise their bookkeeping properly, and ensure that quarterly submissions run smoothly once the system becomes mandatory.

Preparing early is always easier than fixing problems later.

Seek Professional Help

We’re Here to Help You Transition. Elaga Accountancy specialises in supporting landlords with end-to-end MTD compliance — from assessing your income, to submitting your quarterly reports, to year-end finalisation.

Whether you’re a UK-based landlord or a non-resident landlord investing from overseas, we’ve got you covered.

Accountants at Elaga help you to simplify what feels complex. We’ll explain in plain language. We’ll tailor a solution that works for your situation — and you can focus on your property, not paperwork.

Talk to Elaga Accountancy Today

Not sure if MTD applies to you?
Worried about deadlines, systems, or what to report?

Let’s talk it through — clearly, calmly, and practically.
We’ll help you plan ahead, avoid surprises, and make the transition stress-free.

Now is the time to get ready.

***Contact us to learn more.

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