Earning over £50,000 as a sole trader? Making Tax Digital applies to you now. Check in 30 seconds →

Making Tax Digital for Income Tax

The tax return is changing. Find out when it hits you.

Making Tax Digital means sole traders and landlords keeping digital records and filing with HMRC quarterly instead of once a year. It's already law for some, and by April 2028 it will reach most. Answer three questions below and you'll know exactly where you stand.

Check if MTD applies to you

Who must join, and when

April 2026Live now Income over £50,000
April 2027 Income over £30,000
April 2028 Income over £20,000
Income means gross self-employment and property income combined, before expenses.

The 30-second check

Does Making Tax Digital apply to you?

Three questions, no email address required, no small print tricks. You'll get a plain answer about whether and when quarterly filing applies to you, and what to do about it.

In plain English

What actually changes under MTD

Digital records, not shoeboxes

Income and expenses must be recorded in MTD-compatible software rather than on paper or in a basic spreadsheet. Set up properly once, with receipt capture on your phone, it's less work than the shoebox, not more.

Four updates a year, not one return

Instead of one January deadline, a summary of your income and expenses goes to HMRC every quarter, with a final declaration after the year ends. Miss the rhythm and points-based penalties build up, so the routine matters.

You see your position all year

The upside nobody mentions: with records kept quarterly, you'll know roughly what tax you owe months before it's due. No more January surprises, and time to actually plan for the bill.

MTD sorted, properly

Set up with you, then handled for you

Online providers will sell you software and wish you luck. I set the whole thing up with you, show you the one thing you need to do (photograph receipts), and then the quarterly filings simply happen. Every Ding Accounting monthly package is MTD-compatible, with digital records kept in Xero.

✓
Set-up done together Software configured, bank feed connected, receipt capture on your phone, and you shown how it works. Once.
✓
Quarterly updates filed for you All four updates and the final declaration, prepared and submitted as part of your monthly package. No extra invoice each quarter.
✓
One person, plain English If HMRC changes something or a deadline moves, you hear it from me in a short email you can actually understand.

Questions people ask

The MTD questions I hear most

My income is close to the threshold. Which side am I on?

HMRC looks at the gross income (before expenses) from your self-employment and any property letting combined, as reported on your tax return. If you're hovering near a threshold, it's worth a proper look rather than a guess, because being wrong means missed filings and penalty points. That's a five-minute job on a free call.

Do I have to buy expensive software?

No. MTD-compatible software starts cheap, and if you work with me on a monthly package, the software is part of how I deliver the service rather than a separate problem for you to solve. If you already use QuickBooks or FreeAgent, those work for MTD too.

What happens if I just ignore it?

HMRC's penalty system for MTD is points-based: each missed quarterly update earns a point, and enough points becomes a fine, with further penalties for late payment. It doesn't go away, and catching up later costs more than starting on time. If you're already behind, that's exactly what my catch-up service is for.

I have a limited company. Does this affect me?

MTD for Income Tax applies to sole trader and property income, not company profits. But if you're a director who also has rental income or a side business over the threshold, your personal filings could still be caught. Worth checking rather than assuming.

Can anyone be exempt?

Yes. If it's not reasonably practicable for you to use digital tools, because of age, disability, location or another good reason, you can apply to HMRC for exemption as digitally excluded. If that might be you, I'll help you make the application.

Don't wait for the letter from HMRC

A free 20-minute call. I'll confirm when MTD applies to you, what it means for your situation, and exactly what it would cost to have the whole thing handled.

Book your free MTD call