Making Tax Digital (MTD) in simple terms: who will it affect and what to prepare for?

🔍 Making Tax Digital (MTD) in simple terms: who will it affect and what to prepare for?
The UK is changing the rules of the game:
From 2026, everyone earning from self-employment or rental property must switch to the digital tax system – Making Tax Digital (MTD).

But what is it? Who does it concern? And why should you pay attention now, even if you’re not “tech-savvy”?

🤖 What is MTD – in simple words
MTD (Making Tax Digital) is a UK tax authority (HMRC) program that requires taxpayers to:

1. Keep income and expenses records in digital format;

2. Use HMRC-approved software (not Excel or paper);

3. Submit quarterly reports to HMRC online.

📌 Who falls under MTD?
It concerns you if you are:
✅ Self-employed
✅ A landlord renting property
✅ Combining both income sources
And your total income is:

• £50,000+ per year → mandatory from April 2026;

• Over £30,000 → mandatory from April 2027.

💡 Digital software – what is it?
It’s not just an app. It’s officially HMRC-approved software that automatically:

• Keeps your bookkeeping;

• Generates tax reports;

• Sends data to HMRC – no manual returns.

Examples: QuickBooks, Xero, FreeAgent, Sage, even simple mobile apps.
But there’s a problem…

😓 Why can MTD be difficult?
For many, it’s a new stress.
You may struggle with digital software if:

• You’re not confident with computers or phones;

• You’re elderly or disabled;

• You lack stable internet access;

• Your religious beliefs restrict technology use.

🛡 You have the right to exemption!
Good news: HMRC allows an official exemption application if:

• It’s physically or mentally unmanageable;

• You can’t meet technical requirements;

• Or you’re simply not confident with technology and afraid of mistakes.
  📨 Applications can be submitted online (or by post) – and you can get official exemption.

🧠 Who should pay attention now?
👨‍🔧 Self-employed (builders, electricians, drivers, tutors)
🏠 Landlords (renting out one or more properties)
🧓 Elderly people used to filing manually
🧕 Those with beliefs limiting tech use
👨‍👩‍👦 People without stable internet or with health issues

✅ What can you do today?

• Check if you fall under MTD from 2026 or 2027;

• Assess if you can handle digital requirements;

• Apply for exemption if it’s difficult;

• Or choose simple software if you want to try.

📣 Don’t wait! Start preparing in advance
Take action while there’s still time:

📝 We will help you:
✔ Identify if you fall under MTD.
✔ Understand digital accounting with the right software.
✔ Prepare an exemption application if transition is impossible.

📣 Don’t delay – act today!
📬 Book a free consultation now, and we’ll review your case, give recommendations, and help avoid mistakes with HMRC.