How Making Tax Digital (MTD) Will Affect Your Personal Tax Submissions

As one of our valued clients, we want to ensure you are fully informed and prepared for the upcoming changes to personal tax submissions under the UK government’s Making Tax Digital (MTD) for Income Tax initiative.

This page provides a breakdown of how these changes will affect you, key timelines and how we can support you through the transition.

Helping You To Adapt

It’s important to note that compliance with Making Tax Digital is not optional. From the specified dates detailed below, all eligible taxpayers will be required by law to follow the new MTD regulations.

This means using compatible digital tools like our software provider of choice Xero to meet reporting and record-keeping requirements.

While the changes may feel challenging at first, adapting early will not only ensure compliance but also unlock the benefits of a more streamlined and transparent tax process.

Making Tax Digital For Income Tax Timeline

The Making Tax Digital (MTD) timeline graphic below outlines the phased rollout of mandatory digital tax submissions.

From April 2026, sole traders and landlords earning over £50,000 annually will need to comply with MTD for Income Tax by maintaining digital records and submitting quarterly updates.

This requirement expands to those earning over £30,000 from April 2027, with further plans to include additional taxpayers in the future.

These deadlines emphasise the importance of transitioning to compliant systems, like Xero, as soon as possible to ensure readiness and compliance with the new digital tax requirements.

burnt-orange-accounting-making tax digital timeline

Breakdown of Now vs. April 2026

Now: You currently file one annual Self Assessment tax return for HMRC, covering all income and expenses for the year.
From April 2026: If your annual income exceeds £50,000, you’ll need to submit quarterly updates of your income and expenses using MTD-compatible software. From April 2027, this requirement will extend to those earning over £30,000.

Now: Many of you may use spreadsheets, manual records, or existing software for tracking finances
From April 2026: You’ll be required to maintain digital records and use software that is fully integrated with HMRC’s systems, ensuring accurate and seamless submissions.

Now: Your tax liabilities are calculated and settled at the end of the year, with limited visibility throughout the year
From April 2026: Each quarterly submission will provide an estimated tax bill, giving you greater clarity on your financial position and allowing for better tax planning.

Aspect	Now	April 2026
Frequency of Reporting	Annual Tax Return	Quarterly updates + year-end declaration
Record-Keeping	Manual Records or spreadsheets	Fully digital records in Xero
Tax Visibility	End of year tax calculation	Real-time tax estimates in Xero
Ease of Compliance	Requires manual tracking	Automated and streamlined via Xero

burnt-orange-accounting-making tax digital workload

Next Steps and our Software Provider of Choice

To ensure that all our clients are fully prepared for the upcoming Making Tax Digital (MTD) changes in April 2026, we strongly recommend migrating to Xero as soon as possible. As our software provider of choice and with our status as a Xero Gold Partner and Certified Advisor, we have the expertise and resources to make this transition seamless for you.

By adopting Xero early, you’ll have time to familiarise yourself with its powerful features, streamline your processes, and confidently meet HMRC’s digital reporting requirements. This proactive step not only ensures compliance but also provides access to the benefits of real-time financial management and automation that Xero is renowned for.

Preparing Early

To ensure we are fully prepared for the April 2026 Making Tax Digital (MTD) deadline, it’s essential that we start preparation work early and maintain a clear, organised approach.

This involves transitioning you to Xero, our software provider of choice, as soon as possible to allow time for setup, training, and familiarisation with the platform.

Key steps include migrating your records to Xero’s digital system, integrating bank feeds, and customising your accounts to meet MTD requirements.

We’ll also provide tailored training sessions to help you feel confident using Xero’s features, from maintaining digital records to submitting quarterly updates.

By starting early, we can avoid last-minute challenges and ensure all our clients are fully compliant and well-equipped to handle the new requirements with ease.