Making Tax Digital in 2026: Are You Ready?
- mhaccountingservic
- Jan 12
- 2 min read
Making Tax Digital (MTD) has been on the horizon for some time, and for many UK businesses and self-employed individuals, 2026 is the year it becomes a reality. While MTD is designed to modernise the UK tax system, it has also created confusion and uncertainty, particularly for those who haven’t yet made changes to how they manage their finances.
If you’re unsure what Making Tax Digital means for you, or whether you’re ready, now is the time to get clarity.
What Is Making Tax Digital?
Making Tax Digital is HMRC’s initiative to move the UK tax system away from paper records and manual submissions. The aim is to improve accuracy, reduce errors, and ensure taxes are reported using digital records and compatible software.
MTD is already mandatory for VAT-registered businesses, but the next major phase affects income tax.
What’s Changing in 2026?
From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will apply to:
Self-employed individuals and landlords with annual income over £50,000
Those affected will need to:
Keep digital records of income and expenses
Use MTD-compatible software
Submit quarterly updates to HMRC
Complete an end-of-period statement
Submit a final declaration each tax year
From April 2027, the rules will extend to those earning over £30,000, meaning many more people will fall within the scope shortly after.
Why Many Businesses Aren’t Ready Yet
Despite the upcoming deadlines, many UK businesses are still:
Using spreadsheets or paper records
Unsure which software is compliant
Unclear about quarterly reporting requirements
Assuming their accountant will “handle it all later”
Leaving preparation too late can lead to rushed decisions, unnecessary stress, and avoidable mistakes.
Why Planning Early Makes a Difference
Getting MTD-ready doesn’t have to be complicated, but it does require time to set things up properly. Planning early allows you to:
Choose the right accounting software for your business
Get comfortable with digital record-keeping
Understand how quarterly updates will work in practice
Avoid penalties for non-compliance
Spread the workload rather than facing a last-minute scramble
Most importantly, early planning gives you confidence and control.
How MH Accounting Can Help
At MH Accounting Services, we support UK businesses and individuals through every stage of Making Tax Digital. From assessing whether MTD applies to you, to setting up compliant systems and ongoing support, we’re here to make the transition as smooth and stress-free as possible.
MTD isn’t just about compliance, done properly, it can also provide better visibility over your finances and support smarter decision-making.
If Making Tax Digital applies to you in 2026, now is the ideal time to prepare. The earlier you act, the easier the transition will be, and the fewer surprises you’ll face down the line.
If you’re unsure where you stand or want support getting ready, speak to us at MH Accounting today and start 2026 with confidence.
07527179365
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