Making Tax Digital for Income Tax
The biggest change to how sole traders and landlords report income in years. Here's what it means for you — and how we'll handle the quarterly filing so you don't have to.
What is Making Tax Digital?
Making Tax Digital (MTD) for Income Tax is a new way HMRC wants self-employed people and landlords to report their income. Instead of one Self Assessment tax return a year, you'll keep digital records and send HMRC a summary every three months, then confirm everything in a year-end declaration.
It sounds like a lot more admin — and for anyone doing their own books, it is. But you don't have to deal with it alone. We set up the software, keep your records current, and file every quarter for you, so MTD becomes one less thing to think about.
The headline
From 6 April 2026, sole traders & landlords earning over £50,000 must keep digital records and file quarterly.
The threshold then drops to £30,000 (2027) and £20,000 (2028) — so most self-employed people and landlords will be brought in over the next few years.
Does Making Tax Digital for Income Tax apply to you?
It's phased in by qualifying income — your gross income (before expenses) from self-employment and property combined.
Have both a sole trade and rental income? You add them together to test against the threshold — so you can be caught even if neither source alone reaches £50,000. Not sure if it applies to you? Ask us.
Three things you'll need to do
Keep digital records
Record your income and expenses digitally using MTD-compatible software — no more shoeboxes or spreadsheets sent in once a year.
Send quarterly updates
Submit a summary of your income and expenses to HMRC every three months — four updates a year instead of one annual return.
File a final declaration
After year-end, confirm your figures and any other income in a final declaration. This replaces the old Self Assessment tax return.
Your MTD deadlines for the first year
Once you're in MTD from April 2026, you'll send four quarterly updates plus a year-end final declaration. Each quarterly update is due on the 7th of the month after the quarter ends.
Miss a deadline and MTD's points-based penalties start to bite. With us, the quarterly updates are simply filed for you, on time, every time.
MTD for landlords & the self-employed
If you’re a landlord
Rental income counts towards your qualifying income, and you’ll file quarterly on your property figures. We make sure mortgage-interest relief (Section 24), repairs vs improvements and allowable costs are handled correctly.
Accountants for landlords →If you’re self-employed
Your sole-trade income is tested against the threshold and reported every quarter. We keep your bookkeeping current and every allowable expense — home office, equipment, mileage — claimed, so the updates are accurate and your tax stays low.
Accountants for the self-employed →We handle Making Tax Digital for you
You didn't start a business to file with HMRC four times a year. With a fixed monthly fee, MTD is simply part of what we do for you:
- We set you up on the right MTD-ready software (Xero, QuickBooks or FreeAgent)
- We keep your bookkeeping current so the quarterly updates are ready
- We submit all four quarterly updates and your final declaration on time
- We tell you what you owe and when — no surprises
- A named accountant you can actually reach when you have a question
Don't leave it late
Getting ready early is far cheaper than scrambling
The businesses that struggle with MTD are the ones that wait until the deadline. Getting your digital records and software sorted now means the quarterly updates become routine — not a panic. If MTD will apply to you in April 2026, the best time to get set up is well before then.
Book a free MTD chatMaking Tax Digital — your questions answered
When does Making Tax Digital for Income Tax start?
Who has to use Making Tax Digital?
What counts as qualifying income?
What are the MTD quarterly update deadlines?
Do I still do a Self Assessment tax return?
What software do I need for MTD?
Are there penalties for missing MTD deadlines?
Is anyone exempt from Making Tax Digital?
Worried about Making Tax Digital? Let's sort it.
Tell us about your business and I'll show you exactly what MTD means for you and what it would cost to have it handled — fixed price, no obligation.