Making Tax Digital: Your Next Steps Before April 2026
Chrissy Leach • 2 February 2026
How to prepare now for the next phase of MTD for Income Tax
From April 2026, thousands of sole traders and landlords will join the next stage of Making Tax Digital (MTD) and it's not something that can be ignored.
What is Making Tax Digital?
Making Tax Digital (MTD) is an HMRC initiative designed to make the UK tax system more efficient, accurate and easier for taxpayers to manage. It replaces traditional paper-based records and manual submissions with a digital-first approach.
MTD affects how businesses and individuals keep their financial records and how they submit tax information to HMRC. You will need to keep your transactions digitally and send quarterly updates to HMRC.
Who Does MTD Apply To?
From April 2026, self-employed individuals and landlords with annual income over £50,000 in their 2024/25 tax return will be in MTD. This is gross income before deducting any expenses, and if you have multiple self-employments or let properties, or both, then it's everything added together. You can ignore other income like employment or pensions.
What Are The Deadlines?
The quarterly submissions will depend on whether you do your accounts to 31 March or 5 April, but the deadline is the same for both.
It will either be:
6 April 2026 to 5 July 2026 – due by 7 August 2026
6 July 2026 to 5 October 2026 – due by 7 November 2026
6 October 2026 to 5 January 2027 – due by 7 February 2027
6 January 2027 to 5 April 2027 – due by 7 May 2027
Or:
1 April 2026 to 30 June 2026 – due by 7 August 2026
1 July 2026 to 30 September 2026 – due by 7 November 2026
1 October 2026 to 31 December 2026 – due by 7 February 2027
1 January 2027 to 31 March 2027 – due by 7 May 2027
Here’s how to start preparing in a way that saves time, reduces stress, and keeps you compliant.
1️⃣ Open a dedicated business bank account
If you haven’t already, now is the time to separate your business and personal finances. MTD will be much easier if your records are clear, accurate, and easy to connect with your accounting software. Having a dedicated business bank account means:
- You can automatically import transactions into your accounting software
- Your income and expenses are easier to track and categorise
- You’ll reduce errors, and the temptation to mix personal and business spending
Many modern business accounts are free and MTD-friendly.
2️⃣ Choose your MTD-compatible software
To comply with MTD, you’ll need to record income and expenses digitally, and send quarterly updates to HMRC. You can use a spreadsheet but you'll need dedicated bridging software to do the quarterly updates so we would recommend using bookkeeping software as there are other benefits, and there are some free options.
✅ Sage Individual Free is an option for self-employed users and landlords with simple accounts.
✅ Mettle (by NatWest) is a free bank account and, as long as you make one transaction per month, gives you free access to bookkeeping softaware FreeAgent.
There are other low cost options available, speak to your accountant if you're not sure. Whichever you choose, make sure it can:
- Record transactions digitally
- Categorise income and expenses
- Submit quarterly updates automatically
- Prepare the annual “End of Period Statement” (EOPS) and final declaration
Bookkeeping software can give you a clearer picture on your profits and what your tax liability is going to be, so you can be more prepared.
3️⃣ Get into the habit now
Even though you don’t need to file under MTD until July 2026, it’s smart to start working digitally now.
You’ll get used to:
- Keeping records digitally
- Reviewing your profit and loss regularly
- Planning for tax instead of being surprised at year-end
4️⃣ Plan ahead for the April 2027 expansion
From April 2027, MTD will extend to those earning over £30,000 from self-employment and/or property. So, even if you’re not caught in 2026, it’s still worth getting your systems ready now. The same software, habits, and bank setup will apply, so anything you do today puts you ahead of the curve.
How CJL Accountancy can help
At CJL Accountancy, we’re already helping clients transition to digital record-keeping smoothly. Whether you need advice on which software to choose, or want a walkthrough of quarterly reporting, we can guide you every step of the way. We can even do your digital bookkeeping and submissions for you.
📞 Get in touch today
to start your digital tax journey with expert support every step of the way.
Many business owners underestimate the real cost of employment beyond the salary they agree to pay
Learn how to read rental accounts and identify the key figures every UK landlord should monitor.
Learn how to read self-employment accounts and identify the key figures every UK sole trader should monitor.
Learn how to read limited company accounts, understand FRS 105 and FRS 102 Section 1A, and identify the key figures every UK company director should monitor.
A UK Chartered Accountant’s Guide for Business Owners and Taxpayers
With anyone able to call themselves an accountant in the UK, choosing a Chartered Accountant gives you greater protection, expertise, and peace of mind.
Confused about Making Tax Digital? Here’s whether you really need an accountant, and how to stay compliant without the stress.
If you’ve been asked to pay tax in July, it’s likely a payment on account. Here’s how it works, how it’s calculated, and what to do if you can’t pay.
MTD ITSA first quarterly update explained for UK sole traders and landlords. Deadlines, what to file, and how CJL Accountancy can help.
The UK government has increased the statutory mileage rates from 6 April 2026 - here’s exactly what it means for you.
