How small business owners pay income tax is set to change. From 2026, there\u2019ll be a phased switch to Making Tax Digital (MTD) \u2013 which will replace the annual Self Assessment process with quarterly tax updates. <\/p>\n\n\n\n
According to our recent survey, almost half (46%) of small business owners are still unsure about how the upcoming Making Tax Digital rules will affect them. And a quarter said that fear of making mistakes was their biggest concern about it. We\u2019re here to simplify the complicated bits.<\/p>\n\n\n\n
Find out how to prepare for the Making Tax Digital changes, check if your business is affected, and see the key dates you need to know.<\/p>\n\n\n\n
And if you\u2019re a landlord looking to learn about Making Tax Digital<\/a>, we have a whole other guide for you.<\/p>\n\n\n\n Making Tax Digital, or MTD, is a government initiative which will require small business owners and the self-employed to complete digital tax records and returns. <\/p>\n\n\n\n The government says that MTD aims \u201cto help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.\u201d<\/p>\n\n\n\n Making Tax Digital is being introduced in phases \u2013 with the changes to Self Assessment and income tax set to come into place in 2026. MTD is already in place for VAT-registered businesses<\/a>.<\/p>\n\n\n\n Watch our quick start guide video on Making Tax Digital to learn about the different start dates, plus what you can do to prepare for when your business becomes eligible.<\/p>\n\n\n\nWhat is Making Tax Digital?<\/h2>\n\n\n\n