Compliance
From April 6, 2026: What Change-Makers (Self-employed and Landlords) Need to Know about Making Tax Digital & Mileage Rates
Significant shifts in UK compliance from April 2026 affect self-employed people and landlords—understanding the new scope for Making Tax Digital and updated mileage rates is now essential.
By NomadicTax Research Team • 5-8 min read • June 1, 2026
## What is Making Tax Digital (MTD) for Income Tax?
Making Tax Digital for Income Tax **became mandatory from 6 April 2026** for:
- Sole traders and landlords who earned **more than £50,000** from self-employment and/or UK property income, based on their **2024-25** tax return. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-142/issue-142-of-agent-update?utm_source=openai))
Those below this threshold currently remain outside scope until HMRC phases in further extensions. The transition requires software, digital record-keeping, and use of HMRC’s agent services account (ASA) if using an adviser. Requirements include keeping digital records of income and expenditure and submitting quarterly updates, although specific reporting intervals depend on income type. If you already use MTD for VAT, there will be similarities but distinct rules apply.
## Updated Mileage Rates from 6 April 2026
New **Approved Mileage Allowance Payments (AMAPs)** for business journeys in **private vehicles** have increased significantly:
| Vehicle | Rate per Business Mile • First 10,000 miles | Rate per Business Mile • Over 10,000 miles |
|--------|---------------------------------------------|---------------------------------------------|
| **Cars and Vans** | 55p | 25p |
| Motorcycles | 24p (all miles) | — |
| Cycles | 20p (all miles) | — |
These replace the previous rate of **45p for first 10,000 miles** for cars and vans. ([kpmg.com](https://kpmg.com/us/en/taxnewsflash/news/2026/05/tnf-uk-temporary-reductions-in-transport-related-taxes-guidance-on-taxation-of-ecosystem-services-consultation-on-changes-to-plastic-packaging-tax.html?utm_source=openai))
## Who Needs to Update Their Practices
- **Self-employed individuals and landlords** must update bookkeeping and remuneration calculations to accommodate new rates and digital reporting obligations.
- **Employers** must adjust mileage reimbursement policies to at least meet approved rates for trips to avoid taxable benefits.
- **Tax advisers and accountants** must ensure clients in scope of MTD are registered and compliant before deadlines to avoid penalties.
## Examples to Illustrate Impact
- A tutor driving 8,000 business-miles a year (cars/vans) will claim **£4,400** under new rates (8,000 × 55p) vs £3,600 under old (45p), an extra **£800** annually.
- An agent for a landlord with 12,000 business miles sees first 10,000 at 55p (£5,500) and next 2,000 at 25p (£500) totaling **£6,000**, compared to old £4,500— about **£1,500 extra** relief.
## Actionable Compliance Steps
1. **Assess whether you’re in scope** for MTD – check whether combined self-employment and property income exceeded £50,000 in 2024-25.
2. **Sign up for digital record keeping** – adopt compliant accounting software and register (or ensure your agent registers) through HMRC’s ASA system.
3. **Update mileage policies and claims** – check existing employer reimbursements, self-employed expense protocols, log journeys properly with dates, purpose and postcodes.
4. **Backdate correctly** – mileage relief applies from **6 April 2026**, so track travel from that date.
5. **Stay alert to phased expansion** – HMRC plans more extensions to MTD, so keeping systems ready now reduces future disruption.
With these changes live, missing compliance or under-claiming reliefs is costly. For self-employed and landlords especially, updating your systems, understanding new rates, and ensuring documentation is in order will make a material difference in tax owed and cash flow.