Making tax digital has gone live — here’s what it means (and how we’ll support you)

Making Tax Digital Has Gone Live — Here’s What It Means (and How We’ll Support You)

April 28, 2026

Making Tax Digital (MTD) for Income Tax officially went live on 6 April 2026.

This means that new digital reporting rules now apply to sole traders and landlords with income over £50,000.

This marks one of the most significant shifts in personal tax compliance in decades, and with the new requirements now active, it’s more important than ever to understand what has changed…

And while the rules themselves are not especially complex, the way you as a taxpayer now have to operate throughout the year is VERY different!

Our role here at SAKURA is to make that change as straightforward and simple as possible, rather than something that feels like an additional burden.

What has actually changed

As of now, affected individuals (those who earn income in excess of £50,000 per annum through self employment or rental income) have to register for MTD, meaning  you have to :

  • Keep digital records of income and expenses.
  • Submit quarterly updates to HMRC via MTD-compatible software.
  • Complete a Final Declaration (which is split into two parts rather than one return), and replaces the traditional Self Assessment return.

Remember this isn’t a new tax — but it is a more frequent and digital way of reporting visibility of your income to HMRC throughout the tax year!

But it does result in more admin such as 

✅ More admin each quarter

✅ The need for proper software, and 

✅ A move away from the current “once a year” tax return

The one postive  is that if it is done properly, it removes the usual year-end pressure and spreads things more evenly across the year.

What are the Key Steps through the MTD Transition?

1. Confirming whether MTD applies to you

We will review your latest figures to confirm whether you fall into the initial MTD phase.

Additionally, HMRC is sending letters to sole traders and landlords whose 2024/25 Self Assessment return shows qualifying income over £50,000, advising them that MTD applies from 6th April 2026. 

However it is important to understand:

⚠️ Receiving a letter does not mean you are registered 

⚠️ Not receiving one does not mean it does not apply, and 

⚠️ Registration is mandatory based on the income criteria 

To register for MTD, the individual (or their Accountant) must:

  1. Have a Government Gateway ID
  2. Use MTD-compatible software
  3. Sign up online via GOV.UK
  4. Continue to prepare and submit a Self Assessment return for 2025/26

2. Getting you set up properly

To comply, you need to use MTD-compatible software.

We will:

  • Recommend the right system (typically Xero or QuickBooks) 
  • Set it up correctly 
  • Link it to HMRC 
  • Either manage the records for you or show you how to keep them properly 

3. Managing the quarterly submissions

Quarterly updates are now part of the process.

We can:

  • Prepare the figures 
  • Review them with you where needed 
  • Submit them on time 
  • Keep everything organised in the background 

4. Completing the NEW Self Assessment Tax Return year-end process

The Self Assessment tax return hasn’t disappeared — it has just changed following MTD !

It is now made up of:

  • An End of Period Statement (EOPS) (finalising your business figures) 
  • A Final Declaration (including all other personal income for the tax year) 

How the MTD Process Works (from April 2026)

The Self Assessment tax return process is now split into three parts:

1. Quarterly updates (during the year)

  • Submitted every 3 months
  • Income and expenses for each trade or rental activity 
  • These are NOT a tax return
  • HMRC will use them to provide estimates

✅ These do NOT replace Self Assessment on their own

2. End of Period Statement (EOPS)

  • One per business / income source
    • One for each sole trade
    • One for UK property
    • One for foreign property (if applicable)
  • It confirms:
    • Final income and expenses for that trade
    • Capital allowances, adjustments, claims
  • It is due by 31 January following the tax year

✅ The EOPS replaces the “business pages” of the Self Assessment tax return

3. Final Declaration 

  • Submitted once per individual
  • It includes:
    • Personal income (PAYE, savings, dividends)
    • Reliefs and allowances
    • Tax due confirmation
  • It is also due by 31 January following the tax year

The Final Declaration replaces the SA100 “main return”

If you’re unsure whether MTD applies to you, or you’d like to understand how this will work in practice, it’s worth having a short conversation- BEFORE the first quarterly deadline of 2026 !

👉 Book a call here