Many individuals with self-employment or property income are still not ready for Making Tax Digital

From 6^th April 2026, Making Tax Digital for Income Tax will move from something that has been discussed for years to something that requires action. Yet many individuals who fall under the rules are still not prepared.

This matters because, according to the Financial Times, it is expected to apply to around 850,000 individuals in the first year alone. If you fall into this category, waiting until the deadline approaches could make the transition far more difficult than it needs to be.

In this article, we explain who is affected, why preparation matters, and how getting ready early can help reduce disruption.

Who will be affected from April 2026

From April 2026, individuals with combined gross income over £50,000 from self-employed activities and or property for year 2024-25 will need to comply with Making Tax Digital for Income Tax.

Combined income refers to the total of all relevant self-employed and property income before expenses. It is common for people to assume they are below the threshold because each income stream appears modest when viewed in isolation. When added together, those figures can easily exceed £50,000.

Why preparedness remains low

Despite long lead times, overall readiness for Making Tax Digital remains limited. In practice, this is usually linked to a handful of recurring issues.

Some individuals continue to rely on manual records or spreadsheets that are not compatible with digital reporting requirements. Others believe their accountant will handle the entire process, without realising that their own approach to record keeping will need to change. There is also ongoing uncertainty around what needs to be reported and how frequently.

Under Making Tax Digital for Income Tax, digital records must be kept and updates submitted to HMRC on a quarterly basis, followed by a final declaration at the end of the tax year. This represents a clear shift away from the annual Self Assessment process many are familiar with.

What preparation for Making Tax Digital actually involves

Getting ready for Making Tax Digital is not simply a question of selecting software close to the deadline. Effective preparation starts with understanding how income is generated, how records are maintained, and how information will be reviewed and submitted throughout the year.

For most affected individuals, this includes reviewing existing bookkeeping processes, moving to compatible digital systems, and ensuring records are accurate and up to date. Choosing the right software is a key part of that process, particularly where there are multiple income streams or property involved. We can help assess which software options are appropriate and ensure they align with Making Tax Digital requirements.

Preparation also means becoming familiar with new reporting timelines well in advance, so quarterly updates become routine rather than disruptive. Addressing these points early helps make Making Tax Digital a manageable change rather than a last minute scramble.

The risks of delaying action

Although April 2026 may feel some way off, postponing preparation increases the likelihood of rushed decisions and avoidable errors.

Quarterly submissions require consistency. Establishing that consistency gradually is far easier than trying to change habits at speed. Early preparation also allows time to identify weaknesses in existing records and resolve them before compliance becomes mandatory.

Finding clear and practical guidance

There is no shortage of commentary on Making Tax Digital, but not all of it offers clarity.

Our Making Tax Digital FAQ sets out who is affected, what will change, and how the new requirements work in straightforward terms. Our Making Tax Digital hub brings together insights, updates, and practical guidance designed to support those preparing for the transition.

Using trusted resources can help turn uncertainty into a clear plan.

Take steps before the April deadline

If your combined self-employed and or property income exceeds £50,000 for the year 2024-25, now is the time to act. Around 850,000 individuals are expected to come within the scope of Making Tax Digital for Income Tax from April 2026, and readiness levels remain low.

If you believe you may be affected by the changes, get in touch. Starting early is one of the most effective ways to reduce pressure and approach the new requirements with confidence.