If you are self-employed or receive income from property, 2026 brings an important change that is worth having on your radar now. Making Tax Digital is moving into its next phase, and while it may sound technical at first, the key point is simple: more people will need to keep digital records and send updates to HMRC in a different way.
For many sole traders and landlords, this is one of those changes that can feel easy to put off until later. But understanding it early can make it much easier to prepare.
What is changing?
From 6 April 2026, Making Tax Digital becomes mandatory for sole traders and landlords with qualifying income over £50,000.
HMRC has also said the rules will extend further in later years:
- from 6 April 2027 for those with qualifying income over £30,000
- from 6 April 2028 for those with qualifying income over £20,000
That means this is not just a change for one small group. Over time, it is expected to affect a much wider range of self-employed people and landlords.
Why this matters
For some people, this will mean changing how records are kept. For others, it may mean using software they have not used before or changing how they stay organised throughout the tax year.
If you currently manage things in a more informal way, this may feel like a big shift. But the earlier you understand what is coming, the easier it becomes to prepare gradually rather than feeling overwhelmed later.
Who should be paying attention now?
This is especially relevant if you are:
- self-employed
- a sole trader
- a landlord with qualifying rental income
- someone whose income may cross one of the thresholds in the next few years
Even if the first deadline does not apply to you in April 2026, it may still be sensible to understand what is coming next.
Why preparation matters
Changes like this are often easier to deal with when they are approached steadily. Leaving everything until the point it becomes mandatory can create unnecessary pressure, especially for busy people already managing clients, tenants, invoicing, maintenance or day-to-day business admin.
Preparing early may help you:
- understand which threshold applies to you
- look at how your records are currently kept
- identify whether new systems may be needed
- reduce stress later on
What this means for mortgage applicants too
For self-employed people and landlords, organised financial records are often useful well beyond tax reporting. Clear paperwork and up-to-date records can also make mortgage conversations smoother when it comes to showing income and understanding affordability.
That does not mean Making Tax Digital is a mortgage requirement in itself. But being more organised financially can have wider benefits across different parts of your financial life.
Keeping things practical
The most important thing is not to panic. This is one of those changes that sounds more intimidating when you first hear about it than it may feel once it is broken down properly.
A simple first step is understanding whether the rules apply to you in 2026, 2027 or 2028. From there, it becomes much easier to think about what preparation may be needed.
Conclusion
Making Tax Digital is almost here, and for self-employed people and landlords, it is worth understanding now rather than later. Knowing the timeline, the income thresholds and the likely practical impact can help you feel better prepared and less rushed as the changes come into force.
If you are self-employed or have property income and want to understand how your financial position may affect future mortgage options, Forever Home Mortgages is here to help you make sense of the bigger picture.
