The UK tax system has continued its digital transformation, and 2026 marks another major step forward. Making Tax Digital (MTD) is no longer just a future requirement — it is now a core part of how individuals and businesses must keep records and submit tax information to HMRC.
Whether you’re a sole trader, landlord, limited company, or partnership, understanding MTD in 2026 is essential for staying compliant and avoiding penalties.
What Is Making Tax Digital?
Making Tax Digital (MTD) is HMRC’s long-term programme designed to modernise the tax system by requiring:
- Digital record-keeping
- Quarterly submissions
- Use of HMRC-approved software
- A fully digital audit trail
The aim is to reduce errors, improve accuracy, and give taxpayers real-time visibility of their financial position.
MTD Requirements in 2026
MTD for VAT (Mandatory for ALL VAT-registered businesses)
By 2026, every VAT-registered business must:
- Keep digital records
- Submit VAT returns through MTD-compatible software
- Maintain digital links between all records
This applies even if your turnover is below the VAT threshold.
MTD for Income Tax Self-Assessment (MTD ITSA)
2026 is a key year for MTD ITSA rollout.
It applies to:
- Self-employed individuals
- Landlords with qualifying property income
You must now:
- Keep digital records of income and expenses
- Submit quarterly updates to HMRC
- Complete an End-of-Period Statement (EOPS)
- Finalise your annual tax position digitally
This replaces the traditional once-a-year Self Assessment process.
MTD for Corporation Tax (Preparation Phase)
While not yet mandatory in 2026, HMRC continues to prepare for the rollout of MTD for Corporation Tax.
Companies are encouraged to:
- Move to digital record-keeping
- Adopt MTD-compatible accounting software
- Prepare for future digital submissions
Why MTD Matters More Than Ever in 2026
MTD isn’t just a compliance requirement — it’s a major opportunity for businesses to modernise their financial processes.
✔ Reduce errors
Digital systems minimise mistakes caused by manual entry.
✔ Real-time financial visibility
Quarterly updates help you understand your tax position throughout the year.
✔ Faster, easier submissions
No more last-minute paperwork or missing receipts.
✔ Better business decisions
Accurate, up-to-date data supports smarter planning and budgeting.
How We Support Your MTD Transition in 2026
We provide full end-to-end support, including:
- Setting up MTD-compatible software
- Digital bookkeeping and record-keeping
- Quarterly submissions for VAT and Income Tax
- Year-end accounts and tax returns
- Ongoing compliance monitoring
- Training and support for you or your team
Whether you’re switching from spreadsheets or upgrading your current system, we make the transition smooth and stress-free.
Ready to Get MTD-Compliant for 2026?
MTD is now a core part of the UK tax system — and staying compliant is essential.Get in touch today to ensure your business is fully prepared for 2026 and beyond.
We offer tailored support packages for sole traders, landlords, and limited companies.
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