Making Tax Digital - What Self-Employed Workers Should Know

Introduction

If you're self-employed in the UK, a big tax change is on the horizon. Making Tax Digital (MTD) for Income Tax is being extended, and by 2026, most self-employed workers will need to follow new digital rules to submit tax information. It might sound like a long way off, but it is not just about a due date—it is about how you handle your records moving forward. These changes will affect how you keep your books, what tools you use, and how you share your numbers with HMRC.

These new expectations might feel a bit overwhelming at first. Gone are the days where keeping receipts in a shoebox and handing them to your accountant once a year will cut it. This shift demands quicker updates, better records, and digital platforms that keep things in order throughout the year, not just at the end. Whether you're running a one-person business or juggling multiple clients, it pays to understand what is coming and why planning ahead matters.

Adapting To Making Tax Digital

Making Tax Digital is HMRC’s plan to move more of the UK’s tax system online. It is already in place for VAT-registered businesses, and from April 2026, it will apply to self-employed workers earning over a certain threshold from sole trade or property income. That means if you are a contractor, freelancer, or anything in between, the way you report your income and expenses is changing.

For most, the main change will be the need to use software to keep digital records and send in quarterly updates. HMRC will no longer accept annual returns typed in by hand or based on paperwork pulled together at the last minute. To comply, you will need to:

1. Use MTD-compatible accounting software

2. Keep all your income and expense records digitally

3. Send tax updates every three months through your software

4. Sign a final declaration at year end to confirm figures

Adapting to these new rules is not just about downloading an app. You need tools that match how often you invoice, track business expenses, and separate your personal spending from your business books. The software must also communicate directly with HMRC. If it does not, that creates more work later and could lead to missed deadlines or mistakes.

One example from Tonbridge is a self-employed photographer who previously used a mix of handwritten logs, and paper bank statements for their end-of-year returns. Under MTD, this approach needs to change. Now, the income from regular shoots, travel costs, and equipment purchases needs to be recorded promptly using approved software so that tax is calculated correctly each quarter.

Adjusting to these rules now will make life easier later, especially when it comes to your cash flow and tax bills. Getting ahead of the changes can also reduce stress when 2026 arrives.

Benefits of Online Accounting Services

As the tax system becomes more digital, having the right support behind you can make a meaningful difference. That is where online accounting services come in. They work in real time, give you easy access to your information, and keep everything tidy and in one place. Instead of chasing paperwork or copying data between spreadsheets, everything can be stored securely online, ready when you need it.

Here is how online accounting services can help you manage the shift to Making Tax Digital:

- Syncs with HMRC-approved software, so you know you are compliant

- Keeps your income and expense records organised throughout the year

- Allows you and your adviser to view the same numbers instantly

- Helps plan for tax bills earlier by clearly showing profits and cash flow

- Provides peace of mind with automatic updates, reminders, and backups

For example, a freelance web developer based in Tunbridge Wells might have clients paying at various times and business expenses for tools, equipment, and travel. With online accounting services, these payments and costs can be recorded directly from a phone or laptop. There is no need to remember transactions from months ago or search through email chains for receipts. It all stays recorded and accessible in one place, making tax updates easier and less stressful.

How ABMV Can Help

When the rules change, it's important to have experienced advisers on your side. That is where ABMV comes in. We understand how MTD works and how to help self-employed clients get ready without hassle. Our professional team can assist with everything from setting up the right software to checking that your records meet HMRC’s standards.

Instead of trying to figure it all out alone, our expert support can help you avoid costly delays and errors. Whether you have been self-employed for years or are just getting started, we are here to make the transition as smooth as possible. With ABMV, managing tax becomes a consistent process rather than an annual stress.

Start Preparing Today For Fewer Headaches Tomorrow

Getting ready for MTD is more than ticking boxes. It is about creating a tax process that is clear, organised, and efficient. Waiting until the last moment could lead to unnecessary pressure. Taking action now gives you time to adjust and feel confident before the deadline arrives.

Making Tax Digital does not have to be difficult. With the right software and a trusted team like ABMV, your business can stay focused while meeting the new requirements. For self-employed workers across Kent, including Tonbridge and Tunbridge Wells, early preparation is the key to managing tax with less stress and more certainty.

Planning ahead for the transition to Making Tax Digital is key to avoiding unnecessary headaches. For seamless integration into this new system, consider using reliable online accounting services. This will not only streamline your tax processes but also keep your financial records organised all year round. Discover how ABMV can simplify your accounting needs with trusted support tailored to self-employed professionals.