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Making tax digital

Journalist: Emma Lunn, Freelance

ended 31. July 2025

I'm writing a piece for a national newspaper about Making Tax Digital. Changes from April 2026 means the self-employed and landlord turning over £50k+ will need to keep digital records and file quarterly returns to HMRC online, using HMRC-compatible software.

I need expert comments from accountants, tax/personal finance/landlord experts, answering the following:

Are the SE/landlords generally aware of MTD and will everyone will ready for April 2026?

What exactly do those affected need to do regarding software and quarterly returns?

Those affected can voluntarily sign up for MTD now and get to grips with the system before it's mandatory. Is it a good idea to do this, or wait until April 2026?

There are various software options. What is the best one that's free/low cost and compatible with HMRC?

What are the penalties with not complying with the new regime and are they fair? 

3 responses from the Newspage community

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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
MTD is not the benign modernisation that HMRC proclaims. It is a shocking state-mandated administrative burden being forced upon the smallest and least equipped enterprises. Surveys after surveys reveal that nearly half of sole traders remain entirely unaware of MTD with a further quarter only "slightly aware". This is a spectacular failure of communication, given that April 2026 is now less than nine months away. The professional landlord with a substantial portfolio and dedicated accountant is likely prepared. The problem lies with the vast army of accidental landlords and smaller sole traders who still believe a shoebox of receipts is adequate to run a business. This policy will inevitably accelerate the exit of amateur landlords, further professionalising the rental market by sheer administrative force. Let us be clear about the true nature of this 'reform'. It is not tax simplification but rather a state-mandated surveillance, with a recurring software fee for the privilege.
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Tony Redondo
Founder at Cosmos Currency Exchange
I have many self-employed and landlord clients, and the majority are unaware of MTD (Making Tax Digital), and 70% remain uninformed. Only 10% feel ready to meet the April 2026 deadline. HMRC’s outreach is lacking, risking a rushed transition. QuickFile (free up to 1,000 entries) and Hammock (£9.99/month) are reasonably priced MTD-compliant options. When asked, I have suggested clients check the GOV.UK website for approved software. My accountant tells me that late submissions earn points, leading to fines (~£200-£400). High interest (8.5%) applies.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Speaking with our clients, no one know anything about these changes. The communication from HMRC has been diabolical and there will be chaos if they start imposing fines from their deadline. Most landlords with a few properties don't keep digital records and rely on their accountants, seeing them once a year. This is yet another onerous responsibility on the landlord, driving them out of the industry. Although some software like Xero or Quickbooks offer cheaper basic versions, it's another cost and time pressure for landlords and the self employed.