Making Tax Digital Is Coming — Whether You’re Ready or Not

Quarterly reporting is about to hit sole traders, landlords, and side-hustlers right where it hurts: in the workflow.

Let’s cut to it:
If you earn more than £50,000 from self-employment or property income, Making Tax Digital for Income Tax (MTD ITSA) is coming for you in April 2026.
If you earn £30,000+, you’re up next in 2027.
The idea is simple. The impact is not.

The HMRC Sales Pitch

HMRC says this is all about “modernising the tax system.”
You’ll file quarterly updates, keep digital records, and do a final year-end declaration.
You won’t have to wait until January to know your tax position.
You’ll get better insights. Smoother cashflow. More control.

Sounds great, right?

Except…

Here’s What That Really Means

• More admin — you go from one Self Assessment a year to five (quarterly + final)
• Software is now compulsory — no more free HMRC portal for this
• Penalties are point-based — miss a few deadlines and the fines escalate fast
• You still pay tax annually — so you’ve got more work, but the same deadline

It’s just moving the stress around the year instead of parking it in January.

Who’s Affected?

• Sole traders over £50k turnover (2026), then £30k+ (2027)
• Landlords with rental income above those same thresholds
• Side-hustlers who make decent money — Etsy sellers, tutors, creatives, eBay flippers

If you’ve got more than one income stream, HMRC will count the total. So your £28k trading business + £25k in rental income? You’re in.

And no, you can’t opt out unless you’re digitally exempt — which, let’s face it, 99% of people aren’t.

What You’ll Actually Need To Do

1. Use compliant software — Xero, QuickBooks, FreeAgent or something similar
2. Keep your books up to date — no more once-a-year fire drills
3. Submit figures quarterly — income, expenses, categorised properly
4. File a year-end statement — like Self Assessment, but digital

If that already sounds like too much — good. Because you’ll want to get ahead of this now, not later.

Here’s What I’m Seeing Locally

I work with sole traders, landlords, and side-hustlers across Rochdale, Oldham, Bury, and beyond. Most of them:

• Don’t realise they’re caught by this
• Still use Excel or paper
• Think “I’ll deal with it next year”

That’s not a plan. That’s a penalty waiting to happen.

My Advice

• If you’re near or over £30k in income, act like you’re already in.
• Start using digital tools now, while you’ve got breathing space.
• Don’t wait for HMRC to write to you — they will, eventually, but by then every accountant in the country will be swamped.

I’m already helping clients set up simple, affordable systems.
Not because HMRC said so — but because once it’s in place, the peace of mind is worth it.

Final Word

This isn’t the end of the world. But it is the end of the once-a-year tax routine.
You can fight it, or you can get ahead of it.

But if you do nothing — and wake up in March 2026 still on spreadsheets — you’ll be one of thousands rushing to catch up.

And HMRC doesn’t do grace periods anymore.