If you're self-employed in the UK, the way you handle tax may already have changed.
Making Tax Digital is HMRC's system for digital tax record-keeping and reporting. For freelancers and sole traders, the relevant scheme is Making Tax Digital for Income Tax.
Under it, you keep digital records and send HMRC quarterly updates using compatible software. You still submit one tax return every year.
It applies based on your qualifying income: total turnover from self-employment and property before expenses.
From 6 April 2026: income over £50,000.
From 6 April 2027: income over £30,000.
From 6 April 2028: income over £20,000.
The aim is more accurate records, maintained and reported through the year rather than assembled only at the end.
You keep digital records as you go, send quarterly updates, and submit your annual tax return using compatible software after the tax year ends.
Paper-only records do not meet the requirement. You can keep using spreadsheets, but you need compatible bridging software and digital links to send the updates and tax return.
Check your qualifying income against the thresholds and confirm whether an exemption applies.
Start keeping digital records now.
Choose HMRC-recognised compatible software and sign up before your start date.
FreelanceOS helps you maintain digital income and expense records through the year. Upload a bank statement, reconcile transactions into tax categories, and keep an ongoing estimate of the tax you may owe.
FreelanceOS is completing HMRC's recognition process and cannot yet submit MTD updates or tax returns to HMRC. Until recognition is complete, use HMRC-recognised compatible software for required submissions.
Making Tax Digital is mandatory once the rules apply to you, unless you qualify for an exemption. Preparing early keeps it simpler.