The UK tax system is undergoing its most significant change in a generation, and it’s happening now. The government’s Making Tax Digital (MTD) programme is already in place for VAT, and from April 2026, it will begin applying to Income Tax for millions of business owners and landlords.

If you're self-employed, operate a partnership, run a limited company, or earn income from property, MTD will change the way you manage your taxes, forever. At Elaga Accountancy, we’re ready to support you through every step. This post will introduce this new and complex system. We have face-to-face discuss with HMRC respective colleagues directly in a few occasion, and raising concerns from industrial practitioners. Below are key highlights of the coming changes.

Coming MTD Implementation, What’s Changing?

MTD for Income Tax will require affected individuals to:

• Keep digital records of business income and expenses
• Submit quarterly updates to HMRC through compliant software
• Complete an End of Period Statement and Final Declaration annually

This isn’t a voluntary pilot anymore. It’s the new standard. Implementation will be phased, but for many, it starts as soon as April 2026.

Who Will Be Affected Under The New MTD Spectrum?

Starting 6 April 2026, MTD for Income Tax will apply to individuals who:

• Are registered for Self Assessment
• Earn income from self-employment or property, or both
• Have a qualifying income over £50,000 in the 2024–25 tax year

This threshold will lower over time:

• From April 2027: Income over £30,000
• From April 2028 (anticipated): Income over £20,000

If you’re not sure whether this applies to you, now is the time to speak to your accountant.

What About MTD For Sole Traders, Partnerships, and Landlords?

If you’re running your business as a sole trader, part of a partnership, or receiving rental income, you will likely fall within the scope of the MTD system over the next few years.

Even if you’re not due to enter MTD in 2026, the new digital recordkeeping and submission requirements will apply in due course.

Now is the time to start thinking digitally. And we’re here to help you prepare early, not react late.

What Does MTD Mean for You?

From 2026, the days of once-a-year manual tax returns are over. You’ll need:

• MTD-compatible software
• A digital recordkeeping system
• A process for submitting quarterly updates to HMRC
• Confidence that you're doing it all correctly

Don’t worry, we’ve got you covered.

Are You Or Your Accountants MTD Ready

Are you ready to handle the new MTD spectrum? Are your existing accountants MTD ready? At Elaga Accountancy, we use HMRC-recognised MTD software that’s fully integrated and ready to go. Our early-access pilot programme is open to clients now, so you can be confident you’ll be compliant before the deadlines hit.

What we offer:

• Expert support for sole traders, companies, partnerships, and landlords
• Smart tools to help you digitise your records
• Automatic bank feeds via Open Banking
• AI-powered transaction categorisation
• A powerful mobile app for easy collaboration
• Training and onboarding assistance for you and your team

Save Time. Reduce MTD Errors. Stay Compliant.

With MTD, compliance is no longer optional, but cost-efficiency and simplicity still are.

Whether you’re a small business or managing multiple properties, we’ll help streamline your accounting and keep your tax affairs in good shape, without the stress. Want to know if you’re eligible, when to start, or how to get ready? Speak to us now. 

A New Era for Tax. A Better Partner for You.

As we enter a new digital tax landscape, Elaga Accountancy remains your reliable partner, ready to guide you through every change.

Whether you’re just starting, already trading, or expanding your business, now is the time to take control of your tax journey and future-proof your processes.

We’ll continue publishing practical advice in this blog series to help you navigate what’s next.

Contact to Elaga Accountants Today

Let’s get your business MTD-ready, and stay ahead of the changes.

***Contact us to learn more.

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