Making Tax Digital Launches April 2026: What Freelancers Need to Know
By Invoa Team
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is confirmed to launch in April 2026. After several delays since it was first announced in 2015, HMRC has committed to the current timeline and preparations are underway across the accountancy and software industries. Here is what is happening, who it affects, and what you can do to be ready.
What is launching in April 2026?
From April 2026, sole traders and landlords with qualifying income over £50,000 per year will be required to:
Keep digital records
All income and expense records must be held in HMRC-compatible software. Paper records and manual spreadsheets will no longer meet the requirement on their own.
Submit quarterly updates to HMRC
Four times a year, a summary of income and expenses must be submitted digitally through MTD-compatible software. The deadlines are 5 August, 5 November, 5 February, and 5 May.
Submit an End of Period Statement and Final Declaration
The annual Self Assessment tax return is replaced by an End of Period Statement and a Final Declaration, both submitted through software. The payment timeline remains the same.
MTD does not change how much tax you pay or when you pay it. It changes how you report your income to HMRC — from once a year to four times a year.
The April 2026 timeline in full
MTD ITSA mandatory for sole traders and landlords
Qualifying income over £50,000
Second wave of MTD ITSA
Qualifying income over £30,000
Further rollout
Income under £30,000 — date not yet confirmed
What has changed since MTD was first announced?
MTD ITSA has been delayed multiple times since HMRC first announced it in 2015. Each delay has given more time to prepare — but also created confusion about whether it would actually happen. The current April 2026 date appears firm. HMRC has indicated no further delays are planned, and software providers and accountancy firms are already in the process of building and certifying MTD-compatible tools.
Some of the more onerous original proposals — such as requiring quarterly submissions for landlords with complex property portfolios — have been simplified. The overall framework, however, is unchanged: digital records, quarterly updates, and a final declaration.
What do I need to do before April 2026?
Check whether you are in scope
Add up your gross income from self-employment and UK property for the last full tax year. If the total exceeds £50,000, the April 2026 deadline applies to you. If it is between £30,000 and £50,000, your deadline is April 2027.
Start keeping digital invoice records now
Every invoice you raise in Invoa is already a compliant digital income record for MTD purposes. The sooner you start, the more complete your records will be by the time the deadline arrives.
Choose software for expense tracking and submissions
You will also need HMRC-recognised software to track business expenses and submit your quarterly updates. Many accounting platforms are already MTD-ready or in the process of certification.
Sign up for voluntary testing when HMRC opens it
HMRC runs voluntary pilot programmes before mandatory rollout. Joining early allows you to test the process and iron out any issues before compliance becomes compulsory.
Talk to your accountant
If you work with an accountant or tax adviser, speak to them now about how they are handling MTD for their clients. Many will manage the quarterly submissions on your behalf.
The income side of MTD, handled by Invoa
Every invoice you raise in Invoa captures all the information HMRC requires for digital income records under MTD — client, date, amount, description, and payment status. There is nothing extra to set up. Start keeping compliant digital records today, free.
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