Learn more about making tax digital
Agents can prepare for making tax digital for income tax (MTD IT) by attending HMRC’s regional events and listening to the latest episode of ICAEW’s The Tax Track podcast.
www.icaew.comHere’s the latest on Making Tax Digital (MTD) as it relates to the UK tax system.
- In 2026, HMRC has been expanding MTD beyond VAT to broader income tax digital record-keeping for self-employed individuals and landlords, with quarterly updates and digital submissions becoming mandatory for more taxpayers over time. This reflects HMRC’s ongoing agenda to modernise tax administration and reduce reliance on annual paper returns.[1][2]
- The threshold and scope for mandation have been evolving, with discussions and pilot testing extending to additional groups and higher income levels as software products and digital records mature. The government has indicated gradual rollout with the aim of “bridging” from current self-assessment practices to a digital-first model.[3]
- Several professional bodies and accounting firms have reported on testing opportunities for MTD IT (income tax) and related regimes, noting that sign-ups for testing periods are available for 2024/25 and 2025/26, with penalties typically not applying during testing and transitional phases. This helps taxpayers and advisors ensure compatibility before full mandation.[6][3]
- For practical implications in 2026, if you’re self-employed or own rental property and you haven’t yet moved to digital record-keeping, you should expect to use compatible software to track income and expenses and to file quarterly updates to HMRC, with final year tax returns aligned to the January filing deadlines once changes are fully implemented.[1][3]
Illustration (what this looks like in practice)
- Before: annual self-assessment filing with a single year-end summary.
- After (pilot/early phase in 2024–2026): maintain digital records throughout the year, submit quarterly updates to HMRC, and file an annual tax return later, with penalties applying for late updates once the system is fully in scope.[3][1]
If you’d like, I can pull the most recent official HMRC guidance or a UK-specific summary from a professional body and present a concise checklist tailored to your situation (sole trader, landlord, or both) with next steps and software recommendations. Would you like a quick action plan for your circumstances in London? Cited sources: HMRC-focused updates and industry analyses noted above.[6][1][3]