Making Tax Digital

Finally upon us?

 

First it was VAT… now it’s income tax! HMRC’s Making Tax Digital (MTD) initiative is changing the way individuals and businesses keep records and report their tax. The goal? To make tax administration more effective, efficient, and easier to get right... but in reality its causing quite the headache for business owners.

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So what does it mean?

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Quarterly income tax submissions

From April 2026, if you’re self-employed or a landlord with income over £50,000, you’ll need to submit quarterly updates to HMRC — not just an annual return. This means a minimum of four submissions a year, plus an end-of-year finalisation.

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For those with income between £30,000 and £50,000, MTD for Income Tax will follow in April 2027.

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What does this mean for you?

• You’ll need to keep digital records of your income and expenses.

• Spreadsheets alone won’t be enough — HMRC-approved software will be required.

• Instead of one January deadline, you’ll be reporting to HMRC every quarter.

• Staying organised will be more important than ever.

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How we can help

We’ll make sure you’re set up with the right software or solution, keep your records compliant, and handle submissions on your behalf. For many clients, this will mean closer, more regular support from us and the reassurance that HMRC deadlines are always met.

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Our aim is simple: to take the stress out of MTD. We’ll guide you through the changes, ensure you remain compliant, and help you plan ahead so there are no surprises.

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Our helpsheet

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If you're interested to find out what MTD will mean for you, have more questions, or are still unsure, then please get in contact so we can talk you through it and give you peace of mind.

 

In the meantime, we have prepared a helpful FAQ sheet for our clients. Which can be downloaded below: