I am NOT VAT Registered & Already Using MTD-Compliant Software
What does Making Tax Digital (MTD) mean for me?
From April 2026, HMRC will require individuals with a combined turnover of more than £50,000 from self-employment, UK rental, or foreign rental activities to keep digital records and submit tax data quarterly under Making Tax Digital for Income Tax.
Because you’re already using MTD-compliant software, you’re ahead of the curve — but there are still some important changes to prepare for.
What to Expect Between Now and April 2026
Here is a rough timeline of what to expect:
April 2025: HMRC Letters Begin
Mid-2025 to Early 2026: Prepare for Quarterly Submissions
Even though you already use digital software, your reporting obligations will change. You’ll be required to file quarterly updates for each qualifying income source — so it’s important to ensure your software setup and bookkeeping practices align with the new requirements.
7 August 2026: Quarterly Submissions Begin
Your quarterly update deadlines will be:
- 7 August
- 7 November
- 7 February
- 7 May
These updates will be followed by a final end-of-year declaration (like your current Self Assessment) due by 31 January each year.
Your Next Steps
Already using MTD-compliant software? Great! Here’s what else you need to do:
1. Understand Your Reporting Obligations
You’ll need to submit quarterly updates to HMRC for each qualifying income stream, followed by a final annual declaration:
- Self-employment = 4 quarterly returns + 1 final return
- Rental income = 4 quarterly returns + 1 final return
This means you could have to submit up to 10 reports each tax year.
2. Review Your Turnover
Check your 2023/24 turnover. If it’s above £50,000, you’re within scope for April 2026. If you’re close to the threshold, you may still receive a letter from HMRC.
3. Book Your Onboarding Call
Our team will:
- Help you plan your quarterly reporting schedule
- Confirm your software setup is MTD-ready
- Advise on how to manage multiple income streams if needed
4. Understand Opt-Out Rules (if applicable)
Exemptions may be available due to age, religion, or disability, but they must be applied for directly with HMRC. Unfortunately, we cannot do this on your behalf — though we can guide you through the process.
How Exchange Can Help
- We’ll handle the quarterly submissions, year-end declaration and help you avoid penalties
- We'll check that your software is properly configured for quarterly MTD submissions
- If you receive a letter and think it's incorrect, we can advise how to respond
What We Can't Do
- Apply for an exemption from MTD — but we’ll guide you on how to do it
- Access your NI records — HMRC requires that individuals do this directly
The Upside of MTD
Fewer emails, more visibility
With software access, we can see your records in real-time — no more chasing for missing data.
We handle the reporting
We’ll take care of quarterly updates and year-end reporting, so you can focus on running your business.
The Downside of MTD
More submissions = more work
MTD requires at least five reports per year, compared to one annual return. This creates more admin and will unfortunately result in a fee increase, though the cost will be tax deductible.
Quarterly approval required
You’ll need to approve each quarterly return and the annual summary before we submit them to HMRC.
Software subscription
Even if you already have software, there may be additional features needed for full MTD compliance. These costs are usually tax deductible.
Penalties
HMRC’s new penalty regime applies for late or missing quarterly updates. We’ll keep you on schedule to help you avoid these.
Book Your Discovery Call
Let’s ensure you’re MTD-ready well before the 2026 deadline.
