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Making Tax Digital: What It Means for You

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Making Tax Digital (MTD) is HMRC’s way of modernising the tax system. The idea is simple: instead of keeping paper records and submitting one big tax return at the end of the year, you keep digital records of your income and expenses and send updates online throughout the year. This helps you stay on top of your finances, reduce mistakes, and see exactly where you stand with your tax.

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Who Needs to Use It?

MTD currently affects sole traders and landlords with income from self-employment or rental properties. Over the next few years, more people will need to join:

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• From April 2026, anyone earning over £50,000

• From April 2027, the threshold drops to £30,000

• From April 2028, most people earning over £20,000​

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What You Need to Do

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• Keep your records digitally using software that works with HMRC’s system.

• Send quarterly updates to HMRC, not full tax returns, just summaries of your income and expenses.

• Submit a final declaration at the end of the tax year.​

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Why It’s Good for You

MTD makes your taxes easier to manage. By updating HMRC throughout the year:

• You avoid last-minute stress at tax time.

• You reduce the risk of errors and penalties.

• You get a clear view of your finances all year round.

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We can help you get set up with the right software, guide you through quarterly submissions, and make sure you stay fully compliant. Think of us as your MTD guides, keeping it simple and stress-free so you can focus on your business or property portfolio.

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