As of April 6, 2026, the UK tax system has officially changed for self-employed individuals and landlords earning over £50,000. You are now required to keep digital records and submit quarterly updates to HMRC using compatible software (like Sage or Xero) instead of waiting for the annual January deadline. The first of these quarterly updates is due by August 7, 2026, and those earning between £30,000 and £50,000 should prepare to join the system in April 2027.

 

“Going digital” means more than just using a computer; you must maintain a direct digital link between your records and HMRC, as manual spreadsheets alone are no longer compliant. While you still have until January 31st to finalize your figures and pay your tax, you must now report your income and expenses every three months. This shift is designed to reduce errors and provide a real-time view of your tax liabilities, ending the “shoebox of receipts” era.

 

To stay compliant, your immediate action plan is to confirm your 2024/25 turnover and transition to MTD-compatible software if you exceed the £50k threshold. It is also highly recommended to separate your business and personal bank accounts now to simplify your digital bookkeeping. Moving early will help you avoid the stress of the August deadline and ensure your business is aligned with the new legal requirements.

If you need any help or you want to get a head start for 2027 please get in touch.