Making Tax Digital is no longer something that only applies to a small group of VAT registered businesses. By 2026, MTD will affect a much wider range of UK taxpayers. This includes sole traders, landlords and small businesses. All of which may believe it does not apply to them.
At Stopfords, we regularly speak to clients who are unsure whether they fall within the MTD requirements. This includes what deadlines apply, and what action they should be taking now. This quick guide below explains clearly who needs to comply with Making Tax Digital in 2026. OPlus how our professional MTD services can help ease the load.
What Are the Making Tax Digital MTD Requirements in the UK?
Making Tax Digital is an HMRC tax system programme. It requires businesses and individuals to keep digital records and submit tax information using compatible software.
The core requirements are:
- Digital record keeping
- Use of HMRC approved accounting software
- Quarterly submissions to HMRC instead of one annual return
- An End of Period Statement to finalise tax figures
These requirements apply differently depending on your business type and income.
Who Must Comply With Making Tax Digital in 2026?
By 2026, Making Tax Digital will apply to most self employed individuals and landlords who meet specific income thresholds.
Sole Traders
If you are self employed and earn more than £30,000 per year. You will now be required to comply with Making Tax Digital for Income Tax self assessment.
This includes:
- Tradespeople
- Freelancers
- Consultants
- Small business owners operating as sole traders
You will need to keep digital records of income and expenses and submit & send quarterly updates. Then finally file a digital End of Period Statement.
Landlords
Landlords earning more than £30,000 per year from property income will also fall under Making Tax Digital rules.
This applies to:
- Single property landlords
- Portfolio landlords
- Joint property owners, where individual income exceeds the threshold
Digital record keeping and quarterly reporting will become mandatory. This will replace the traditional annual Self Assessment tax return process.
VAT Registered Businesses
Making Tax Digital for VAT is already in place and applies to:
- All VAT registered businesses, regardless of turnover operating in the UK.
These businesses must keep digital VAT records and submit VAT returns using compatible software. Then they are required to use digital links between systems where required.
If you are VAT registered, you should already be compliant. If not, professional MTD services can help you get set up correctly.
What Are the Key MTD Deadlines to Be Aware Of?
Understanding the deadlines is crucial for compliance.
- MTD for VAT is already mandatory
- MTD for Income Tax applies from April 2026 for those earning over £30,000
- Quarterly updates will replace annual submissions
- End of Period Statements will still be required after the tax year ends
Preparing early can help avoid disruption and penalties.
What If You Earn Below the MTD Threshold?
If your income is below £30,000, Making Tax Digital may not yet be mandatory for you in 2026. However, this threshold is expected to reduce further in future years.
Many of the businesses we work with choose to adopt digital accounting early. This enables them to simplify tax reporting by avoiding rushed changes and improving their financial visibility.
Do You Need Professional Help With Making Tax Digital?
While it is possible to manage MTD yourself, many individuals and businesses might find the transition challenging. Software selection, quarterly reporting and compliance checks can be time consuming and stressful.
Using our professional MTD services means:
- Your records are set up correctly from day one
- Deadlines are managed for you
- Errors and penalties are reduced
- You receive ongoing support and advice
At Stopfords, we help clients understand their obligations and manage Making Tax Digital efficiently and confidently.
Learn more about our MTD services (Link to MTD page) Speak to a member of our team (Click to call)
FAQs About Making Tax Digital in 2026
Who needs to comply with Making Tax Digital in 2026?
Sole traders and landlords earning over £30,000 per year, along with all VAT registered businesses. All of which must now comply with MTD requirements.
What are the MTD requirements in the UK?
Digital record keeping, quarterly submissions using compatible software, and an End of Period Statement.
Does Making Tax Digital replace Self Assessment?
It replaces how information is submitted, but you still finalise your tax position annually.
What happens if I do not comply with MTD?
HMRC can issue penalties for late submissions, incorrect records and non compliance.
Can an accountant help with Making Tax Digital?
Yes. Professional MTD services ensure compliance, reduce errors and save time.
Get Help With Making Tax Digital
If you are unsure whether Making Tax Digital applies to you in 2026, or you want support managing your obligations, Stopfords can help.
Our MTD services are designed to keep your business compliant, organised and prepared for the future.
