⏰ Countdown to Making Tax Digital for Income Tax
80 DAYS TO GO
Until April 6, 2026
The clock is ticking on the biggest change to UK tax reporting since 1997.
Right, let's have a chat about something that's been quietly creeping up on a lot of sole traders and landlords, and it's now officially around the corner.
You know that feeling when you've been putting off sorting through that drawer of receipts, telling yourself "I'll do it before the tax return deadline"? Well, HMRC has decided that annual scramble isn't working anymore. They want to hear from you more often. Like, quarterly often.
Welcome to Making Tax Digital for Income Tax, and if you're a sole trader or landlord earning over a certain threshold, this is going to change how you do things from April 2026.
Don't panic though. That's what we're here for. Let's break it down together.
What's Actually Changing?
Here's the big picture: instead of submitting one Self Assessment Tax Return at the end of the tax year (usually accompanied by mild stress and cold sweats), you'll now need to send HMRC quarterly updates throughout the year.
Think of it like this, remember when you used to get your bank statement once a month in the post, and now you can check your balance every five minutes on your phone? HMRC wants that same real-time visibility into your business income and expenses.
The key changes are:
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Digital record-keeping becomes mandatory , No more shoeboxes of receipts or scribbled notes in a paper ledger. Everything needs to be recorded digitally.
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Quarterly submissions , Every three months, you'll send a summary of your income and expenses to HMRC through compatible software.
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Final declaration still required , You'll still submit a year-end statement by January 31st, where you can make adjustments and claim reliefs as usual.
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Compatible software is essential , You'll need to use HMRC-approved software (or bridging software if you're attached to your spreadsheets).
The good news? This isn't a new tax. It doesn't change how much you pay. It just changes when and how you report.
Who's Affected? (And When?)
Not everyone's in the first wave, HMRC is rolling this out in phases based on your income. Here's the timeline:
| Start Date | Who Must Comply |
|---|---|
| April 2026 | Sole traders and landlords with income over £50,000 |
| April 2027 | Income over £30,000 |
| April 2028 | Income over £20,000 |
Important: The threshold is based on your gross qualifying income, that's your turnover before expenses, not your profit. So if you're turning over £55,000 but only taking home £30,000 after costs, you're still in the first group.
HMRC is already writing to people whose 2023/24 tax returns showed income near or above £50,000. If you've received one of those letters (or suspect you might be close), now's the time to start preparing.
Why Is HMRC Doing This?
Good question. And honestly? There's some logic to it (even if it feels like extra work at first).
The government reckons that quarterly reporting will:
- Reduce errors , Smaller, more frequent updates mean less chance of forgetting income or expenses
- Improve cash flow planning , You'll have a clearer picture of your tax position throughout the year (no nasty January surprises)
- Bring the UK tax system into the digital age , Because apparently we're still catching up with 1997
They're calling it the most significant change to the tax system since Self Assessment was introduced. That's not hype, it really is a fundamental shift in how sole traders and landlords interact with HMRC.
What Do You Need to Do? (Your Action Checklist)
Alright, let's get practical. Here's what you should be thinking about between now and April:
1. Check If You're Affected
Look at your 2024/25 tax year income. If your combined gross income from self-employment and/or property exceeds £50,000, you're in the first wave. If it's between £30,000 and £50,000, you've got until April 2027, but starting early never hurt anyone.
2. Start Exploring Software Options
HMRC maintains a list of compatible software providers. Some are free, some have monthly fees, and they range from simple apps to full accounting platforms. The key is finding something that:
- Connects directly to HMRC
- Suits how you work
- You'll actually use (no point in fancy software gathering digital dust)
If you're a spreadsheet devotee, look into "bridging software" that can link your existing setup to HMRC's systems.
3. Get Your Digital Records in Order
Now's a great time to audit how you're currently tracking income and expenses. If you've got receipts in three different apps, a notebook on your desk, and some transactions you "meant to write down," it's time to consolidate.
Digital record-keeping doesn't have to be complicated, but it does need to be consistent.
4. Understand the Quarterly Schedule
Your reporting periods will follow the tax year quarters:
- Q1: 6 April – 5 July (deadline: 7 August)
- Q2: 6 July – 5 October (deadline: 7 November)
- Q3: 6 October – 5 January (deadline: 7 February)
- Q4: 6 January – 5 April (deadline: 7 May)
Building these dates into your calendar now will save you from deadline scrambles later.
5. Consider Getting Support
Look, we get it, this is a lot to take in, especially if you're already juggling running a business with everything else life throws at you. You don't have to figure this out alone.
The Silver Lining (Yes, There Is One)
We know change can feel overwhelming, especially when it involves HMRC and the words "mandatory" and "quarterly." But here's the thing: once you're set up, quarterly reporting can actually make your life easier.
Think about it:
- No more end-of-year panic trying to remember what that £47.50 payment in March was for
- Better visibility of your tax position means you can plan ahead (and save accordingly)
- Digital records are searchable, shareable, and don't get lost in the washing machine
- You'll spot problems earlier, like that client who still hasn't paid you from six months ago
It's a bit like finally organising your wardrobe. Annoying to set up, but once it's done? Actually quite satisfying.
How 6 4 G Ltd Can Help
Here's where we come in. At 6 4 G Ltd, we specialise in taking the headache out of bookkeeping and back-office admin, and Making Tax Digital is exactly the kind of thing we can help you navigate.
Whether you need:
- Help choosing and setting up MTD-compatible software
- Support getting your digital records organised
- Ongoing bookkeeping to keep those quarterly submissions stress-free
- Just someone to explain what all this actually means for your specific situation
We're real people (not a call centre, promise), and we genuinely enjoy helping sole traders and small businesses stay on top of their finances without losing their minds.
Final Thought
April 6, 2026 is coming whether we're ready or not, but the good news is, you've got time to prepare. Start small: check if you're affected, have a look at some software options, and think about whether your current record-keeping will cut it.
And if you'd rather hand the whole thing over to someone who actually finds this stuff interesting? Well, you know where to find us.
Got questions about Making Tax Digital? Want to chat through your options? Drop us a line at 6 4 G Ltd: we're always happy to help.
80 days and counting. Let's make sure you're ready. ⏰