If you’re self-employed or a landlord you’ve probably heard the term “Making Tax Digital.” But what does it actually mean? Does it apply to you? And what do you actually need to change?
Let’s break it down.
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC’s way of moving tax online. Instead of one big tax return every year, the self-employed will need to keep digital records and send updates every quarter.
Basically:
- You track income and expenses using software (no more spreadsheets!)
- You send a quick update to HMRC every three months
- You do one final check-in at the end of the year
That’s it. It’s not more tax. It’s just a different way of reporting it.
When does it kick in?
Good news: you’ve got plenty of time. HMRC is rolling it out in stages.
- From April 2026, if your total income from self-employment or property is over £50,000
- From April 2027, if you’re earning £30,000 to £50,000
Under £30k? You don’t have to do anything right now. But, it’s coming. And if you like being ahead of the game, you can opt in early.
What’s actually changing?
Let’s keep it real: MTD isn’t scary.
Here’s the switch:
- No more paper records
- No more panic
- No more waiting till January to do it all at once (phew!)
You’ll send quick updates throughout the year instead of cramming it all into one stressful deadline. You’ll use proper software, not scribbled notes or scattered spreadsheets. And HMRC will get a clearer picture of what you earn.
Sounds like more admin on top of your already busy business? It doesn’t have to be if you’ve got the right setup.
How Buzz Accounting makes Making Tax Digital easy
Buzz is already built for this.
- It connects to your bank and logs your income and expenses in real time
- It keeps everything tidy, digital, and MTD-ready
- It reminds you when updates are due: no surprises, no last-minute stress
- And it shows how much tax you owe right now, not months down the line
So when MTD kicks in, Buzz users won’t need to change a thing. You’re already doing it.
Not using Buzz yet? Don’t wait for MTD to land. Buzz takes the hassle out of accounting, giving you the tools you need to stay on top of your finances. Built for sole traders, landlords and freelancers, plans start at just £9.99 per month. Sign up today and stay ahead.