At Hillier Hopkins, we’re helping clients prepare for one of the biggest changes to the UK tax system in decades — Making Tax Digital (MTD).
From April 2026, self-employed individuals and landlords with income of £50,000 or more will need to keep digital records and submit updates to HMRC every quarter using MTD-compatible software such as Xero, QuickBooks or Sage.
This marks the next phase of HMRC’s digital transformation — extending the rules that already apply to VAT-registered businesses to include income tax. The aim is to make tax simpler, more accurate, and easier to manage — but it will also mean big changes to how many people record and report their income.
What’s changing — and when
Under MTD for Income Tax Self Assessment (ITSA), you’ll need to:
- Keep your income and expenses digitally using approved software
- Submit quarterly updates to HMRC (in August, November, February and May)
- Send a final declaration after the end of the tax year, by the usual 31 January deadline
The rollout will happen in stages:
- April 2026 – For those earning £50,000+ from self-employment or property
- April 2027 – For those earning £30,000+
- April 2028 – For those earning £20,000+
If your income is below these levels, or if you operate as a partnership or limited company, you’re not yet required to join — but we recommend getting familiar with the system early.
How Hillier Hopkins can help
We understand that moving to digital tax reporting can feel like a big step — especially if you’ve been managing your records manually or in spreadsheets. That’s why we’ve developed a complete MTD transition service to guide you through it smoothly.
Our service includes:
- Checking if and when you’ll be affected – We’ll review your income sources -including jointly owned property – to confirm your start date and ensure you’re ready in time.
• Managing the software for you – Our bookkeeping solutions team will manage the bookkeeping and submission process entirely – setting systems up to make the admin burden as minimal as possible while helping you remain fully compliant. - Quarterly and annual submission support – We’ll make sure your quarterly updates are filed on time, help you review the data, and complete your final declaration at the end of the year.
- Specialist guidance – We’ll always advise you on the most practical approach to compliance so you can feel reassured you’re doing the right thing at all times.
We also continue to support VAT-registered businesses under MTD, providing bridging software solutions for clients who prefer to maintain records in spreadsheets.
Why prepare now
Although April 2026 may sound a long way off, experience from the VAT rollout shows that early preparation makes all the difference. Clients who adopt digital systems sooner find it easier to track income, manage expenses, and plan for tax — often discovering better financial insights in the process.
By starting early, you can test your software, refine your bookkeeping routines, and avoid any last-minute rush or risk of penalties.
If you’re self-employed or a landlord, now is the time to start planning for MTD. Contact us at MTD@hhllp.co.uk so our team can assess your situation, set up your digital systems, and make sure you’re ready for the changes ahead.
