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Upcoming changes Tax compliance
Making Tax Digital (MTD)
What is Making Tax Digital?
Making Tax Digital (MTD) is an HMRC initiative designed to modernise the UK tax system. It requires businesses and individuals to keep digital records and submit tax information to HMRC using approved software.
For Income Tax Self Assessment (ITSA), MTD will replace the traditional annual tax return with a digital-first process involving quarterly updates and a final declaration. The aim is to make tax reporting simpler, more accurate, and more efficient.
Making Tax Digital for Income Tax (MTD ITSA)
From April 2026, HMRC is introducing Making Tax Digital for Income Tax Self Assessment (MTD ITSA). This will change the way self-employed individuals and landlords report their income.
Who is affected?
- From April 2026: Self-employed individuals and landlords with total business and/or property income over £50,000.
- From April 2027: The threshold extends to those with income over £30,000.
- Below £30,000: You won’t be required to join at this stage.
What changes?
- Digital records – You must keep income and expense records digitally using HMRC-approved software.
- Quarterly updates – Instead of a single annual tax return, you’ll send HMRC updates every quarter.
- End of Period Statement & Final Declaration – At the end of the year, you’ll confirm your figures and make a final declaration (replacing the Self Assessment return).
How MKN Will Help You Stay Compliant
We know that these changes may feel daunting — but with MKN by your side, you won’t need to worry about the compliance burden.
Our team will:
- Guide you through the right MTD-compatible software for your needs.
- Ensure your records are kept digitally and correctly.
- Take care of your quarterly updates, year-end statement, and final declaration — so you remain fully compliant with HMRC’s rules.
With MKN managing the process, you can focus on running your business while we handle the tax compliance.