If you’re a landlord or sole trader with income over £50,000, your tax admin is about to change.
From 6 April 2026, Making Tax Digital (MTD) for Income Tax begins for people with qualifying income over £50,000. That means many self-employed people and landlords will move from “one annual return” to a system of digital record keeping and regular updates during the year.
The good news: once it’s set up properly, it can actually make life easier – fewer surprises, better visibility of how you’re tracking, and far less panic around filing deadlines.
At Crossley and Davis, we’re helping clients get ready now, so April doesn’t arrive with a scramble.
What is MTD for Income Tax, in plain English?
MTD for Income Tax is a new way of reporting your income to HMRC that requires you to:
- keep digital records, and
- submit updates to HMRC during the year, using MTD-compatible software.
It’s designed to reduce errors and encourage more “real time” reporting, but for many people it’s a big shift from how they’ve always done things.
Who does it affect from April 2026?
You’ll be in the first group if you have qualifying income over £50,000 from:
- self-employment, and/or
- property (rental) income.
A couple of important points:
- It’s based on qualifying income, not total household income.
- If you have both self-employment and rental income, they can combine towards the threshold.
If you’re not sure whether you’ll be caught, it’s worth checking now – March is the perfect time to get clarity before the new tax year starts.
What actually changes from 6 April 2026?
Here’s what will feel different compared to the current system:
1) Digital record keeping becomes the default
Instead of spreadsheets and paper records (or “I’ll sort it at year end”), you’ll need to keep your records in a digital format that meets MTD requirements.
That doesn’t necessarily mean a complicated system – but it does mean building a consistent habit.
2) You’ll send updates during the year
Rather than waiting until after the tax year ends, you’ll send quarterly updates to HMRC through software.
These updates are not the same as your final tax return, think of them as progress updates rather than a final bill.
3) There’s still a year-end “finalisation”
You’ll still confirm your final figures and claim any reliefs/adjustments in a year-end step (this is where your “final” position is confirmed).
So: more touchpoints, but not necessarily more stress if your bookkeeping is kept up to date.
Common worries we’re hearing (and the reality)
“Does this mean I’ll pay tax quarterly?”
Not automatically. The quarterly updates are reporting updates, not a demand for payment.
“I’m already organised – do I need to do anything?”
Possibly. Even organised clients may need to check whether their current software and workflow are compliant.
“I don’t want complicated bookkeeping.”
You don’t need complicated. You need consistent (and the right tools).
What should you do now (in March)?
If you’re likely to be affected, the best move you can make is getting ready early. Here’s a sensible March checklist:
- Confirm whether your qualifying income is likely to exceed £50k
- Get your records into a clean, consistent shape
- Choose MTD-compatible software (or confirm your current one is suitable)
- Decide on a simple workflow: who does what, when, and how often
- Do a “dry run” month so it’s routine before April
Want our MTD readiness checklist?
Comment “MTD” and the team at Crossley and Davis will send you our MTD for Income Tax readiness checklist.
Or, if you’d rather talk it through, book a quick call and we’ll help you figure out:
- whether you’re in scope,
- what you’ll need to change (if anything),
- and the easiest way to make it manageable.
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