19/03/2026
Making Tax Digital (MTD) is rolling out further from April — but what should you actually be doing if you’re self-employed?
Here’s the practical side 👇
📌 1. Check if it applies to you
If you’re self-employed or a landlord, MTD for Income Tax will apply if your total income from these sources exceeds £50,000 (and later £30,000). If you’re close to this, it’s time to prepare now. If not, keep scrolling.
📌 2. Stop relying on spreadsheets (or paper)
MTD requires digital record keeping. That means using software like QuickBooks, Xero, or similar — not manual records or basic spreadsheets (unless they’re MTD-compliant).
📌 3. Get into the habit of regular bookkeeping
You’ll be submitting updates every quarter, so leaving everything until January won’t work anymore. Monthly bookkeeping is the safest approach.
📌 4. Separate your business and personal finances
If you don’t already have a dedicated business account, now is the time. It will make quarterly reporting far easier and cleaner.
📌 5. Track everything properly
Income, expenses, receipts — all need to be recorded digitally and consistently. Missing data will cause issues when submitting updates.
📌 6. Speak to your accountant early
Don’t wait until this becomes mandatory for you. A quick check now can save a lot of confusion (and potential penalties) later.
📌 7. Don’t panic — but don’t ignore it
MTD isn’t happening overnight for everyone, but HMRC is clearly moving in this direction. The businesses that adapt early will find it much easier.
If you’re not sure where you stand or what setup you need, it’s worth getting clarity now rather than rushing later.
