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Making Tax Digital for

Income Tax (MTD IT)

Making Tax Digital for Income Tax (MTD IT) is being introduced by HMRC from April 2026, starting with self-employed individuals and landlords earning over £50,000 annually.

This marks a significant shift in how income tax will be recorded and reported – and we’re here to guide you through it.

MTD IT stands for Making Tax Digital for Income Tax. It’s part of the UK government’s initiative to modernise the tax system by requiring digital record-keeping and quarterly reporting via approved software.

MTD IT applies to:

  • Self-employed individuals

  • Landlords with rental income

From 2026 onwards, you’ll need to:

  1. Keep digital records of all income and expenses.

  2. Submit quarterly updates to HMRC via MTD-compatible software.

  3. File an End of Period Statement (EOPS) and a Final Declaration to confirm your annual income and tax obligations.

We have capacity to take on new clients, so if you or someone you know needs support preparing for MTD IT, get in touch today.

If you have any questions at all, please don’t hesitate to contact us. We’re here to make the transition smooth, simple, and stress-free.

Key questions answered

    • From April 2026: Those earning over £50,000 annually

    • From April 2027: Those earning between £30,000 and £50,000

    • From April 2028: Those earning over £20,000

  • Digital Record-Keeping

    Paper records and spreadsheets won’t be sufficient – you’ll need to use MTD-compatible software such as Xero, QuickBooks or FreeAgent.

    Quarterly Updates

    Instead of one annual Self Assessment return, you’ll submit four updates per year, summarising income and expenses.

    Year-End Submissions

    You’ll finalise your accounts with an End of Period Statement and Final Declaration via your software.

    Greater Transparency

    With regular updates, you’ll have a clearer picture of your financial position and tax due throughout the year.

    • Check your income threshold to determine when MTD IT will apply to you.

    • Choose MTD-compatible software that suits your needs.

    • Organise your records and begin digitising your processes if needed.

    • Learn the submission process for quarterly updates, EOPS and the Final Declaration.

  • All income, expenses, and bank transactions related to your business or property – digitally.

  • HMRC-approved software like Xero, FreeAgent, or QuickBooks. We can help you choose and set up the right one.

  • No – MTD IT replaces the annual return with quarterly updates, an EOPS, and a Final Declaration.

  • You may face HMRC penalties for missed deadlines or failure to use digital records.

How we can help

We’re ready to support you through every step of your MTD IT transition.

  • We’ll help you understand how MTD IT affects your specific situation and build a personalised plan to ensure compliance.

  • We’ll recommend the best software, handle the setup, and provide full training so you feel confident using it.

  • We can manage your quarterly updates, ensuring accuracy and compliance with HMRC requirements.

  • From the End of Period Statement to the Final Declaration, we’ll manage your submissions so you can focus on running your business.

  • Have questions or hit a technical hurdle? We’re here when you need us.

Let’s get you ready for Making Tax Digital for Income Tax (MTD IT)

Contact us