Introduction: 2026 Is Closer Than You Think

The UK’s Making Tax Digital (MTD) programme is changing the way millions of freelancers and self-employed professionals handle tax.

From April 2026, all self-employed individuals earning over £50,000 will need to:

• Keep digital financial records, and

• Submit quarterly tax updates to HMRC through approved software.

In short: paper records and spreadsheets won’t cut it anymore.

But don’t panic, with the right digital tools (like Nebula), MTD doesn’t have to be complicated.

1. What Is Making Tax Digital (MTD)?

Making Tax Digital is part of HMRC’s plan to modernise the UK tax system. Its goals are simple:

• Make tax reporting more accurate

• Reduce errors caused by manual entry

• Help people understand their tax position in real time

For freelancers and sole traders, this means saying goodbye to year-end chaos and hello to consistent, automated updates throughout the year.

2. Who Does It Affect?

The first MTD phase already covers VAT-registered businesses.

From April 2026, it extends to:

• Self-employed individuals earning over £50,000

• Landlords with property income over £50,000

Then, in April 2027, the threshold will drop to £30,000, bringing even more freelancers into scope.

If you submit a Self-Assessment tax return, this change will affect you.

3. What Will Change for Freelancers?

Here’s what MTD means in practical terms:

• You’ll need MTD-compatible accounting software

• You’ll send quarterly summaries of income and expenses to HMRC

• A final declaration will replace your annual return

That may sound like more admin, but with the right automation, it’s actually less.
Nebula already manages this entire process automatically.

4. How Nebula Keeps You Compliant

Nebula was built specifically for freelancers and small business owners facing these exact changes.

With Nebula, you can:

• Automatically track income and expenses: AI categorises transactions as you go.

• Submit quarterly summaries: directly to HMRC (MTD-ready).

• Automate VAT and Self-Assessment: with real-time accuracy.

• Use Open Banking: to sync all your accounts instantly.

• Get smart insights: into upcoming tax liabilities.

In other words, you’ll always know where you stand and never miss a deadline.

5. Why You Should Prepare Now

Although the 2026 deadline may feel distant, getting ahead means:

• No last-minute panic when MTD becomes mandatory.
  
  

• More accurate records, making annual returns effortless.
  
  

• Early access to AI features that save hours every month.
  
  
  

By joining Nebula’s Founding 100 Users, you’ll be ready long before everyone else and you’ll help shape the next generation of digital finance tools for UK freelancers.

Conclusion: Future-Proof Your Finances

Making Tax Digital isn’t just about compliance, it’s an opportunity to simplify your entire financial life.

Nebula automates the admin, ensures accuracy, and keeps you fully compliant, so you can focus on what you do best.

Don’t wait for 2026. Get started today and make compliance effortless. Nebula Initium Lite was built to help UK freelancers thrive under MTD 2026 and beyond. Join our Founding 100 Users today to experience how AI can simplify your finances, save hours each week, and keep you ahead of every regulation change.