Watch our short video where Chelsea Turner explains what you need to know
Here’s what Chelsea covered in the video above:
Overview
You may have seen the news that HMRC's Making Tax Digital for Income Tax started in April 2026. If you earned more than £50,000 as a sole trader or landlord in 2024-25, you need to act now – but don’t panic, we're here to make it simple.
What you need to do:
You’ll need to use HMRC-compatible software to report income and expenses every three months. These are not tax returns – just simple summaries to keep HMRC updated.
To help you comply easily, Hudson has partnered with specialist accountancy firm Grenfell James to recommend a user-friendly tool that costs as little as £10 per month plus VAT. They have a range of packages available. Contact Grenfell James at MTDitsa@gjassociates.co.uk and copy us at MTD@hudsoncontract.co.uk
You’ll be pleased to know:
- You don’t have to change your accountant.
- If you’re used to doing your own tax returns, you still can.
- If your partner or bookkeeper usually helps you, that’s fine too.
The first quarterly update is due on 7th August 2026. You will still need to file a full tax return and pay any tax due by 31st January the following year, or claim back overpaid CIS deductions exactly as before.
A couple of things to watch out for:
- Don’t overpay – there are some expensive software packages out there you simply don’t need.
- Think carefully about opening a limited company to avoid the new rules – that will be more expensive and cause IR35 problems.
- ‘free’ tools attached to bank accounts (which come with monthly fees) are sometimes inflexible as cash payments cannot be accounted for.
Your questions answered
Getting compliant
Self-employed subbies or CIS operatives who believe they may be caught by MTD should contact Grenfell James direct on MTDitsa@gjassociates.co.uk and copy in Hudson at MTD@hudsoncontract.co.uk
The set-up is simple and it is important to get started now to avoid complications later.