Know which phase applies to you
Making Tax Digital for Income Tax started in April 2026 for sole traders and landlords with qualifying income over £50,000, with lower thresholds phasing in over the following years. If you are near a threshold, watch your income carefully: crossing it changes how you report.
Under MTD you keep digital records using compatible software and send quarterly summary updates to HMRC, with a final declaration after year end. It is a change in rhythm rather than more tax.
The five habits
Record transactions as they happen rather than in batches. Photograph receipts at the point of purchase. Reconcile your bank account monthly so gaps surface early. Diary the quarterly update deadlines the moment you are in scope. And review your income each quarter against the MTD thresholds so nothing takes you by surprise.
Each habit is small on its own. Together they mean your quarterly updates become a fifteen-minute check instead of an evening of archaeology.