Written By Jonathan Palmer
MTD 2026: The 60-Day Countdown. Stop Panicking, Start Prepping.
By Paul Gatenby, February 2025
The “once-a-year” tax return is officially on its deathbed. From April 6, 2026, HMRC is changing the rules of the game for high-earning contractors. If you aren’t digital, you aren’t compliant. No more shoeboxes of receipts; no more “dealing with it in January.”
If you earned over £50,000 in the 2024/25 tax year (from self-employment or property), you are in the first wave of Making Tax Digital (MTD). Here is exactly how to handle it without the headache.
The “Straight-Talk” Checklist:
[ ] The Threshold Check: Look at your 2024/25 tax return. Was your gross income (before expenses) over £50k? If yes, you’re in.
[ ] Ditch the Spreadsheet: Standard spreadsheets don’t talk to HMRC. You need MTD-compliant software. We recommend FreeAgent – it’s built for contractors and keeps everything in one place.
[ ] Get an Expert in Your Corner: Our partners at Honest Accounting are FreeAgent Platinum Partners. They can get you set up so your bank feeds, invoices, and expenses flow directly to HMRC.
[ ] Mark Your Calendar: Use the roadmap below to stay ahead of HMRC.
Your 2026 Compliance Calendar:
| Date | Milestone | What you need to do |
| 6 Apr 2026 | MTD Go-Live | Start digital record-keeping for all income/expenses. |
| 7 Aug 2026 | Q1 Update Due | First digital summary submission to HMRC. |
| 7 Nov 2026 | Q2 Update Due | Second digital summary submission. |
| 7 Feb 2027 | Q3 Update Due | Third digital summary submission. |
| 31 Jan 2028 | Final Declaration | Confirm final figures and pay your tax bill. |
Quarterly Updates aren’t “Mini Tax Returns”
Let’s bust a myth: You aren’t doing four tax returns a year. A quarterly update is just a digital “summary” of what’s come in and what’s gone out.
- No Audits: You don’t need to claim capital allowances or do complex tax adjustments every three months. Save that for the “Final Declaration” in January.
- The Payoff: By July 2026, you’ll actually know what you owe. No more guessing, no more January tax-bill-induced heart attacks.
Need a hand? While we handle your payroll, Honest Accounting handles the heavy lifting of MTD compliance. One group, total coverage. Give Chay Motley a call today on 07983 187204 chay@honestaccounting.co.uk
Get MTD Ready Today. Contact Paul and Oli at Honest Payroll, we are here and ready to help:
Paul Gatenby Global Account Director
paul@honestpayroll.co.uk | 07734 864735
Oli Seddon Business Manager at Honest Payroll
oli@honestinternational.ae | 01524 231199