Making Tax Digital is 19 days away. Most UK freelancers aren't ready.

From 6 April 2026, self-employed people earning over £50,000 must keep digital records and submit quarterly updates to HMRC. No more annual returns for them. By April 2027, the threshold drops to £30,000. If you're a freelance developer billing over £50k, this affects you in 19 days. What actually changes Before MTD: Keep records however you like File one annual self-assessment return Use spreadsheets, shoeboxes, whatever After MTD (6 April 2026): Must use HMRC-compatible software Submit quarterly updates (every 3 months) Final declaration at year end All records must be digital from day one The penalties HMRC's new points-based penalty system: Late submission = 1 point Accumulate enough points (4 for quarterly) = £200 penalty Points don't expire for 24 months What software do you need? Free options exist: HMRC's free tool — basic but functional Spreadsheets + bridging software — use your existing setup Paid options (£10-30/month): FreeAgent — popular with freelancers, MTD-ready Xero —