Making Tax Digital: What Business Owners Need to Know (Before 2026)
If you’re self-employed or own buy to let properties as an individual, and file a Self Assessment return, you’ve probably heard about Making Tax Digital (MTD). It’s been hanging around for years, but now the deadlines are real. Here’s what it actually means, who it applies to, and why you don’t want to leave it until the last minute.
What’s changing & when?
From 6 April 2026, MTD for Income Tax kicks in for anyone that has qualifying income over £50k for the 2024-25 tax year will fall into MTD for income tax from April 2026. If your income is £30,000-£50,000, you’ll be expected to follow suit from April 2027. If you’re in a partnership, HMRC hasn’t confirmed your start date yet, but it’s coming.
What this actually looks like in practice:
- You’ll need to keep digital records using proper software (not cobbled-together spreadsheets).
- You’ll send quarterly updates to HMRC on your business income and expenses.
- You’ll still submit two extra bits each year: an End of Period Statement and a Final Declaration (basically tying it all together).
It’s not about sending more tax, it’s about sending it more often, and doing it digitally.
What you should be doing now:
Even if you’re not affected until 2027, get ahead now this will save you stress and probably money in the long run.
Here’s where we’d start:
- Check your income – are you over the £50k mark or getting close?
- Review your software now – tools like Xero are designed for this.
- Start thinking quarterly – if you’re only looking at your numbers once a year, that’s already a problem.
- Talk to someone who gets it – from compliance angle, but from a planning and cash flow point of view.
Final thoughts & How Brisan Can Help:
MTD isn’t just a box to tick, it’s a chance to get into better habits, see your numbers more clearly, and stop the tax bill surprises. We’re not here to scare you, but we’re not going to fluff it up either.
If you’ve got questions (or no idea where to start ) we’ll walk you through it.
We can support you with:
- Reviewing if Making Tax Digital will impact you
- Set up on a Making Tax Digital Compliant Software
- Training on bookkeeping software
- Your quarterly submissions from April next year
