MTD for Income Tax by April 2026: Compulsory digital record keeping and quarterly filing requirements for landlords and unincorporated businesses

MTD: Big changes are coming in April 2026; the way you keep your records and how often you report to HMRC may need to change. This is arguably the biggest change to how tax payers report to HMRC since the introduction of self assessment, it is going to require you to file quarterly, as well as keep your records digitally. April 2026 is not far away, prepare now and be MTD ready.


Who does this affect?

Any unincorporated business, or person who is self-employed and/or a landlord, with a gross annual income of over £50,000, will need to comply with Making Tax Digital (MTD) by April 2026. If you are not already doing so, in order to comply with HMRC’s MTD requirements, you will need to:


  • Maintain digital records, using compatible software, as required by HMRC’s guidelines
  • Submit digital and accurate records to HMRC, on a quarterly basis
  • Submit your final declaration



We strongly recommend that all those who are affected by the rules, which will come into play on 6 April 2026, start to move to a digital record keeping platform now so they are fully compliant by the deadline. HMRC states that MTD rules must be followed for the next accounting period that starts on, or after 6 April 2026.


What do I need to do?

Put simply, if you are not already maintaining your records digitally through an HMRC approved cloud accounting solution, you need to update your record keeping processes so you are MTD ready and to avoid HMRC’s penalties.


What does HMRC mean by digital record keeping?

HMRC requires those who are self-employed or who have a property income of over £50,000 per annum to keep digital records of all business income and expenses. This should commence at the start of the accounting period you are signing up for and you will therefore need to plan ahead. You will need to use HMRC approved software which is compatible to MTD to maintain and submit your digital records.


Gravita’s MTD solution

Gravita has a cloud accounting team who will review your current systems, make recommendations and guide you through this transition to ensure you are ready for these compulsory changes. There are many opportunities to be gained from cloud accounting, which can save you time and money, and we will talk you through these as well.


Why use Gravita’s cloud accounting team to help you get MTD right.

Talk to us to identify and discuss exactly what you need to do to comply with MTD. We will provide you with various options so you can consider whether you wish to carry out all or some of the tasks yourself, or if you want us to look after the whole process for you. Our solution is flexible and we want it to work with you.


Our cloud accounting team has helped hundreds of clients get their businesses MTD ready for VAT. We have been waiting for the current changes relating to income tax, and although Covid-19 delayed this process, it is now happening and clients need to prepare.


Many of our clients who are now MTD compliant for VAT purposes, have had to adopt cloud accounting. Those clients are now enjoying the benefits that come with cloud accounting, of which there are many, and we would welcome a discussion with you to discuss how cloud accounting can help your business.


Further information

Are you keeping your records digitally? If you’re not, please do not hesitate to contact us today or call 020 3514 3215 to arrange a complimentary meeting.

Similar Insights

Fully electric company cars
What is the current tax position of fully electric company cars?
Written by Gravita Tax Consultant, Tim Palmer The tax position of a director or employee with a fully...
Read More
Capital allowances claims
Webinar recording: Capital allowances: Where are we now?
Gravita Tax Consultant, Tim Palmer, presented a webinar on the latest developments and planning opportunities...
Read More
Spring Budget 2024 webinar
Webinar recording: Spring Budget 2024: Optimise the Tax Opportunities
The Chancellor’s Spring Budget 2024 was expected to be one of the most political Budgets of recent times...
Read More

Sign up to Gravita's latest updates and newsletters

Stay up-to-date with our event invites, latest news and updates, straight from Gravita’s experts.