Overview

• From April 6, 2026, self-employed individuals and landlords earning over £50,000 must use MTD-compatible software to keep digital records and file quarterly summaries with HMRC.
• HMRC estimates that about 780,000 taxpayers will be affected in the first year, with an additional 970,000 joining under lower income thresholds of £30,000 in April 2027 and £20,000 in April 2028.
• During the voluntary testing phase a penalty waiver applies to late quarterly submissions, giving taxpayers time to adapt without risk.
• Accountants such as Victoria Thompson of JF Hornby & Co recommend early adoption of digital tools, real-time record keeping and agent authorisation to streamline compliance.
• Eligible taxpayers can authorise accountants or bookkeepers to sign up and file on their behalf through the MTD programme on GOV.UK.