Latest News About Making Tax Digital

Here’s a concise briefing on the latest developments around Making Tax Digital (MTD).

What’s new

• In the UK, HMRC has been expanding Making Tax Digital so that more taxpayers keep digital records and report quarterly updates. Reports in early 2026 indicate the program is rolling out in phases and will affect millions over time, with self-employed individuals and landlords among the first groups affected in several waves.[1][2]

Key timelines

• April 2026 marked the ongoing phase-in for additional taxpayers to adopt MTD, with quarterly submissions and digital record-keeping becoming mandatory for those eligible in the newly expanded scope.[2][1]
• The broader objective remains to reduce reliance on annual self-assessment returns by requiring periodic digital reporting and timely tax payments.[3]

Scope and requirements

• Eligible taxpayers must use compatible software to keep digital records of income and expenditures and submit quarterly updates to HMRC, followed by annual tax returns and any payments due by January 31 of the following year (the existing deadline aligns with the traditional self-assessment cycle). This phased approach means penalties could apply for late submissions or missed updates once fully implemented.[1][2]
• HMRC has signaled ongoing expansion beyond current groups, potentially encompassing more income bands and activities as digital reporting becomes the norm across the tax system.[2]

What to do now

• If you’re affected or approaching the threshold, start preparing by identifying compliant software and establishing a process for quarterly data capture and reporting.
• Monitor HMRC updates and guidance from professional bodies (e.g., ICAEW or tax advisories) for specifics on when your position becomes mandatory and what records you should maintain now to be compliant later.[4][6][10]

Illustrative example

• A self-employed individual or property landlord would move from annual self-assessment to quarterly digital updates, using compatible software to log income and expenses and then file tax returns with payments due in the January deadline following the tax year.

Notes and caveats

• The exact scope, penalties, and deadlines can evolve as HMRC continues its rollout; it’s important to rely on HMRC’s official guidance and updates from professional bodies for the latest details.[10][4][2]

Citations

• HMRC/MET updates and phased rollout details: HMRC updates and Express coverage cited as indicating April 2026 start and phased expansion to ~three million taxpayers.[1][2]
• Background on goals and past milestones: UK government/ICAEW resources outlining the transition toward quarterly digital reporting and the end of some traditional returns.[6][3]
• Additional practical guidance and testing opportunities: ICAEW and Tax Journal discussions on testing and guidance for IT systems and processes related to MTD.[7][4]

If you’d like, I can tailor this to your specific circumstances (e.g., self-employed, property rental, or IT/software readiness) and pull the most relevant official guidance for your situation.