HMRC has now confirmed the official rollout date for the next phase of Making Tax Digital for Income Tax Self Assessment, and if you earn over £50,000 through self-employment or property, it’s time to prepare.
With over 1.75 million taxpayers facing sweeping changes by 2028, this isn’t just an upgrade, it’s a complete overhaul of how you’ll report your income.
(Read Time: Approx. 4 minutes)
Topics Discussed:
- Key dates and thresholds for the phased rollout of Making Tax Digital for Income Tax
- What taxpayers must do to comply, and how Tax Expert is preparing to support clients
What Is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC’s modernisation of the UK tax system.
It replaces traditional Self Assessment with digital record-keeping and quarterly reporting.
Rather than submitting one annual tax return, affected individuals will need to use MTD-compliant software to maintain records and report earnings every three months.
This means no more spreadsheets, handwritten ledgers or paper receipts: your entire accounting process must be digitised.
The Numbers Who Will Be Affected and When
- From 6 April 2026
All self-employed individuals and landlords earning over £50,000 annually from these sources must comply
→ Approximately 780,000 taxpayers will be affected in this first wave
- From 6 April 2027
Those earning between £30,000 and £50,000 will join the scheme
→ An additional 970,000 people will be brought into scope
- From April 2028 (provisional)
The net is expected to widen further to include those earning as little as £20,000 (though this phase is still under review)
That’s a total of around 1.75 million people by 2028, and you could be one of them.
What This Means For You
Quarterly Income Reporting
Gone are the days of submitting a single tax return. Under MTD, you’ll submit earnings data every quarter followed by an end-of-year finalisation.
Digital Record-Keeping is Mandatory
You must maintain digital records of your income and expenses using HMRC-approved software. Paper records or spreadsheets won’t suffice.
No More Last-Minute Submissions
With four filing deadlines per year, procrastination is no longer an option. MTD will encourage and require more frequent engagement with your finances.
Increased Accuracy
According to HMRC, MTD will help reduce common mistakes and improve the overall accuracy of tax returns. This, in turn, should reduce the risk of costly penalties or investigations.
Why This Change Is Happening
HMRC’s rationale for this major overhaul includes:
- Reducing tax errors, as small mistakes cost the Treasury billions each year
- Improving transparency, as frequent reporting gives taxpayers a clearer real-time view of their tax liabilities
- Saving time, since HMRC believes the shift to digital will streamline the tax process for both individuals and businesses
Let’s be clear, the short-term adjustment may be challenging especially for those unfamiliar with accounting software or real-time reporting
How To Prepare Now
While 2026 might seem distant, early preparation is essential. Here’s how you can get ahead:
- Check your income threshold
If your total income from self-employment or property exceeds £50,000, you’re in the first wave
- Adopt digital software
Get familiar with MTD-compatible tools such as Xero, QuickBooks or Sage now before they become mandatory
- Organise your expenses
Switch to digital receipts and real-time expense tracking to streamline quarterly reporting
- Talk to an accountant
Better yet, let professionals handle it for you
Summary
With 780,000 people affected in 2026 and another 970,000 in 2027, the transition to Making Tax Digital for Income Tax will redefine how millions of taxpayers manage and report their income.
If you earn over £50,000 through self-employment or property, your digital tax future begins on 6 April 2026.
Don’t wait for the deadline to hit, get in touch with us at Tax Expert now. We’ll help you prepare, comply and optimise your digital tax reporting before it becomes mandatory.
Fill out our form here for any questions, email us at info@taxexpert.co.uk, or message us on our WhatsApp for out of office hours.
Kind regards,
Ilyas Patel