Changes are coming from April 2026 - here’s what you need to know
From April 2026, many individuals with income from self-employment or land and property will be required to comply with Making Tax Digital (MTD) for Income Tax. This represents a significant change to how you record and report your income to HMRC.
Who is affected by MTD for Income Tax?
From April 2026 – Gross income over £50,000
From April 2027 – Gross income over £30,000
From April 2028 – Gross income over £20,000
Under MTD, you’ll need to:
Keep digital records of your self-employment, land or property income and expenses
Submit quarterly updates to HMRC using MTD-compatible software
File a final tax return at the end of the tax year
How can you prepare for MTD?
At Dains, we’ll make the transition straightforward - from helping you choose the right software, to guiding you through each step, or even managing the process for you. Our priority is making sure you’re compliant, confident, and ready for the change.
Not yet using digital bookkeeping software?
You’ll need to decide how to keep your records from April.
We partner with Xero, a leading, easy-to-use MTD-compatible platform. As a Dains client, you can access preferential licence rates and advice on which package best suits your needs.
For landlords, we also offer licences for Hammock – MTD compliant property management software.
If you do not wish to use Xero or Hammock, we can support alternative options such as FreeAgent, ensuring you have the flexibility to make the optimal choice for your business.
Already using bookkeeping software?
If you’re already working digitally, you’re in a strong position - but now is the perfect time to review your current setup and make sure it’s fit for MTD requirements.
Our team can help assess whether your existing software is the best solution and advise on switching or upgrading if needed.
Next steps
If you are affected by MTD, we will be contact you directly over the next few months to support you in getting ready.