Making Tax Digital · Income Tax · UK-wide
Making Tax Digital for Income Tax — now live. Are you compliant?
MTD for Income Tax started on 6 April 2026 for self-employed people and landlords with income over £50,000. Quarterly digital submissions to HMRC now replace the annual self-assessment return. If you're not already set up, you need to act.
- Live now
- £50,000+ income, from 6 April 2026
- April 2027
- £30,000+ income
- April 2028
- £20,000+ income
- Handled for you
- All four quarters, plus the year end
Finalist — Tax Team of the Year (Small Firm)Accounting Excellence Awards 2026
- CIMA qualified
- AAT qualified
- Fixed fees, agreed on the call
- Business & property
- Lancaster · UK-wide
The quarterly cycle
Four submissions a year, plus one final declaration.
Quarterly updates replace the single annual return. These are not four separate tax returns — they are running totals, submitted digitally through MTD-compatible software.
- 01
Quarter 1
Due 7 August
- 02
Quarter 2
Due 7 November
- 03
Quarter 3
Due 7 February
- 04
Quarter 4
Due 7 May
Final declaration — 31 January
The year-end submission that confirms the full picture. We handle this along with all four quarterly updates as your registered agent — you never log into anything.
Who does it apply to?
The threshold is based on gross qualifying income — your total income from self-employment and property before expenses, not your profit. Earn £35,000 self-employed and £20,000 in rent and your combined £55,000 puts you in the April 2026 group.
| Who | Gross income | Mandatory from |
|---|---|---|
| Sole traders & landlords | Over £50,000 | 6 April 2026Now live |
| Sole traders & landlords | Over £30,000 | 6 April 2027 |
| Sole traders & landlords | Over £20,000 | 6 April 2028 |
| Limited companies | Not applicable | No confirmed date |
| Partnerships | Not yet confirmed | Future date TBC |
What changes
Self-assessment, and what replaces it.
MTD is the biggest change to UK tax administration since self-assessment launched in 1997. Here is what changes for those in scope — and what we take off your hands.
Before MTD
Self-assessment
- One annual tax return by 31 January
- Paper or digital records both acceptable
- File everything at year-end in one go
- One deadline per year
- No software requirement
Under MTD
The new rules
- Four quarterly updates per year
- Digital records only — mandatory
- HMRC-approved software required
- Final declaration by 31 January
- Quarterly deadlines throughout the year
What we do
Handled end to end
- Confirm if & when MTD applies to you
- Set you up on the right approved software
- Maintain MTD-compliant digital records
- Handle all four quarterly submissions
- Submit your final year-end declaration
- Liaise with HMRC on your behalf
Software
Spreadsheets alone are not compliant.
You must keep records and submit through HMRC-approved MTD-compatible software. Bridging software can link a spreadsheet to a compatible submission tool, but the spreadsheet on its own will not do.
We set clients up on whichever fits, and handle every submission as part of the engagement.
Xero
Full MTD-compatible accounting software. Ideal for businesses with employees, VAT and multiple income streams.
QuickBooks
MTD-compatible with strong reporting features. Good for sole traders and small businesses.
FreeAgent
MTD-compatible and particularly well suited to freelancers, contractors and sole traders.
Worth considering
Could restructuring make tax work harder for you?
For some sole traders and landlords, the move to MTD is a good moment to review whether their current structure is the most tax-efficient. Incorporating as a limited company, for example, takes you outside MTD for Income Tax scope entirely — and could reduce your overall tax bill in the process. If you own both a business and property, the interaction between the two can also be restructured to make the most of available reliefs.
Common questions
Making Tax Digital — your questions answered.
Everything you need to know before booking a call.
Not covered here? Ask us directly — we answer within 1–2 working days.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax requires self-employed people and landlords to keep digital records and submit quarterly updates to HMRC — replacing the annual self-assessment return. It applies from 6 April 2026 for those with gross income over £50,000, from April 2027 for those over £30,000, and from April 2028 for those over £20,000.
Do I need to file quarterly under Making Tax Digital?
Yes — if you're in scope, you must submit four quarterly updates per year showing your income and expenses, plus a final declaration by 31 January. The quarterly deadlines are 7 August, 7 November, 7 February and 7 May. These aren't four separate tax returns — they're running totals submitted digitally via your MTD-compatible software.
What software do I need for Making Tax Digital?
You must use HMRC-approved MTD-compatible software such as Xero, QuickBooks or FreeAgent. Spreadsheets alone are not compliant — though bridging software can link them to a compatible submission tool. We set clients up on the right software and handle all submissions as part of the engagement.
Does Making Tax Digital apply to limited companies?
No — MTD for Income Tax applies to sole traders and landlords only. Limited companies are not currently in scope. MTD for Corporation Tax has been discussed but no mandatory start date has been confirmed. If you're considering incorporating your business or property portfolio, this is worth factoring into the decision.
What happens if I miss an MTD quarterly deadline?
A points-based penalty system applies — accumulate enough points and a £200 financial penalty is triggered. However, HMRC has confirmed a soft landing for the 2026/27 tax year, meaning no penalty points will be issued for late quarterly updates during the first year for the April 2026 cohort. This grace period doesn't remove the obligation to submit — it simply means penalties won't apply in year one.
Can my accountant submit MTD returns on my behalf?
Yes — we handle all quarterly submissions and the final declaration on your behalf as your registered agent. You don't need to interact with HMRC directly or log into any software yourself. We maintain your digital records, submit each quarter and keep you informed of your position throughout the year.
Could restructuring my business change my MTD obligations?
Yes — incorporating as a limited company takes you outside MTD for Income Tax scope entirely, since the rules currently apply to sole traders and landlords only. For some people, the move to MTD is a good moment to review whether incorporation or restructuring would reduce their overall tax bill as well as simplify their obligations.
Get started
MTD is live. Don't leave it to chance.
Book a free 20-minute call. We'll confirm whether MTD applies to you, get you set up on the right software and handle your quarterly submissions — so you never have to think about it again.
- Free 20-minute call
- Fee agreed on the call
- No minimum contract
- CIMA & AAT qualified
