Making Tax Digital for Income Tax
What it is, who it affects, and how I can take care of it for you.
What is Making Tax Digital?
Making Tax Digital, often shortened to MTD, is HMRC’s programme to move tax reporting online. VAT registered businesses already use it for their VAT returns.
Making Tax Digital for Income Tax extends this to sole traders and landlords. Instead of sending everything once a year, you keep digital records, send HMRC a short update every quarter, and then submit a final declaration after the tax year ends.
Who it affects, and when
It applies to sole traders and landlords based on their qualifying income, which is their combined gross income from self-employment and property. HMRC is bringing people in over three years:
The timetable
- April 2026
- Qualifying income over £50,000
- April 2027
- Qualifying income over £30,000
- April 2028
- Qualifying income over £20,000
Some people are exempt or can apply for an exemption. The rules have details that depend on your situation, so it’s worth checking rather than assuming.
What changes for you
You’ll need to
- Keep your business records digitally
- Use software that works with Making Tax Digital
- Send a quarterly update to HMRC four times a year
- Submit a final declaration by 31 January
Quarterly deadlines
- 7 August
- 7 November
- 7 February
- 7 May
How I can help
You don’t have to become a software expert. I can check whether Making Tax Digital applies to you, get your records into a digital format, send each quarterly update, and complete your final declaration at the end of the year.
Because I keep your books through the year, your quarterly updates are based on records that are already accurate and reconciled.
This page is a general summary, not advice for your situation. HMRC’s rules can change, so I’ll confirm what applies to you at your free consultation.
Start with a free consultation
Talk through your business with a qualified accountant, then try a month of bookkeeping at no cost. No obligation either way.