From April 2026, HMRC is introducing major changes under Making Tax Digital (MTD). If you earn £50,000 or more from self-employment or rental income, you’ll need to keep digital records and send quarterly updates instead of doing one annual Self Assessment return.

It might sound overwhelming, but the good news is that going digital is simpler than you think — and the right tools make the whole process much smoother.

Who Is Affected?

You’ll fall under the new MTD rules if you are:

• A sole trader earning more than £50,000 per year from self-employment

• A landlord with rental income above the threshold

• Anyone currently completing a Self Assessment for business or property income

What Counts as Digital Records?

Digital records simply mean keeping your financial information in software, not on paper.

This could include:

• Accounting software like QuickBooks Online

• A well-designed spreadsheet that can submit data to HMRC

• Tools like Dext that capture receipts and send them to your accounting system

The goal isn’t to change how you run your business — just how you keep and report your records.

Why It’s Not as Scary as It Sounds

Switching to digital actually comes with big benefits:

• You don’t need to transform your systems overnight — you can transition gradually

• Apps automatically store, categorise, and prepare your data

• You’ll spend less time on paperwork and more time running your business or managing your property

A Quick Example

Snap a receipt in Dext, and the app will:

1. Read the details automatically

2. Send it straight to your QuickBooks Online account

3. Store it safely for your tax records

No more lost invoices, messy spreadsheets, or shoeboxes full of receipts — everything stays organised in one place.