From 6 April 2026, self-employed individuals and landlords earning £50,000 or more must report their income digitally. Further phasing for those earning as little as £20,000 is now also on the cards.

First announced in 2015, Making Tax Digital (MTD) aimed to modernise VAT, Income tax, and Corporation tax reporting by 2020. Now, a decade later—five years behind schedule and £1bn over budget—MTD for Income Tax is moving forward.

Under the new system, affected taxpayers must submit digital income and expense summaries quarterly to HMRC, following with an end-of-period statement. A final declaration, similar to the current tax return, confirming a taxpayer’s full tax liability will also be needed.

As if this wasn’t enough, taxpayers who are used to using HMRC’s website to file returns will now need to keep digital records and use compatible software.

As always, the details matter. At Orion Tax, we’re here to guide you through the changes and provide support where you need it.