Making Tax Digital (MTD) is HMRC's plan to modernise the UK tax system. It requires businesses and landlords to keep digital records and submit information to HMRC using approved software.
Rather than submitting a single annual tax return, affected individuals will need to keep digital records and provide quarterly updates throughout the year.
From April 2026, MTD for Income Tax applies to self-employed individuals and landlords with qualifying income over £50,000. From April 2027, it will extend to those with qualifying income over £30,000.
If you're affected, we'll help you get set up, stay compliant and make the transition as straightforward as possible. For a step-by-step breakdown, read our guide: Making Tax Digital 2026 — what sole traders & landlords must do.
Income and expenses must be recorded digitally — paper books and standalone spreadsheets no longer cut it on their own.
Returns must be filed through HMRC-recognised software like Xero or QuickBooks — not the old HMRC portal.
Under MTD for Income Tax, you'll send HMRC a summary every quarter, plus a final declaration after year end.
Digital records and VAT returns filed through MTD-compatible software. If this isn't you yet, it needs to be now.
MTD for Income Tax begins — sole traders and landlords move to digital records and quarterly updates.
The threshold drops, bringing the next wave of sole traders and landlords into MTD for Income Tax.
HMRC has signalled partnerships and lower bands will follow. Get digital now and the later stages are a non-event.
Making Tax Digital is changing how self-employed individuals and landlords report to HMRC. Book a free 30-minute call and we'll explain what the changes mean for you, when they apply, and how to get prepared.
