.png)
Making Tax Digital for Income, Tax Self-Assessment.
From April 2026, HMRC is changing how self-employed individuals and landlords report their income. If your total qualifying gross income exceeds £50,000 in the 2024/25 tax year, you will be required to keep digital records and submit quarterly updates instead of a single annual return. This threshold lowers to £30,000 from April 2027 (based on your 2025/26 tax return).
Keep Digital Records
Maintain real-time digital records of all business income and expenses throughout the tax year using compatible software.
Send Quarterly Updates
Submit summary updates of your income and expenses to HMRC every three months through your software.
Final Declaration
Confirm your final end-of-year figures, claim any tax reliefs or adjustments, and complete your declaration by January 31.
Compatible Software
Use MTD-compliant accounting software, or keep records in spreadsheets connected to HMRC via bridging software.
Who needs to comply, and when
Below £30,000 MTD is not yet mandatory, though you can join voluntarily. Some individuals may be exempt – including those digitally excluded due to age, disability or location, and members of religious societies that prohibit technology use. We can help you apply for exemption if you think you qualify.
Penalties under MTD
A points-based system: each missed submission earns a penalty point, and once a threshold is reached a £200 penalty applies, with further penalties for continued non-compliance. Late payment penalties and interest can also apply.
Our MTD service
Registration & setup
MTD registration with HMRC, plus software setup and support.
Quarterly submissions
Digital record-keeping guidance and quarterly update preparation.
Final declaration
Your year-end tax calculation, payment advice and ongoing HMRC correspondence.
Frequently asked questions
When do I need to start?
April 2026 if your qualifying gross income (from self-employment and property) exceeds £50,000 in the 2024/25 tax year. April 2027 if your qualifying gross income exceeds £30,000 in the 2025/26 tax year.
Do I still submit a tax return?
Not a traditional annual Self-Assessment return. Instead, you will submit four quarterly digital updates throughout the year and complete a Final Declaration by January 31. This final step allows you to claim tax reliefs, make accounting adjustments, and confirm your total annual income.
Can you handle everything for me?
Yes. Our fully managed MTD service takes care of the entire process—from setting up compliant software and keeping digital records to submitting your quarterly updates and filing your end-of-year Final Declaration on your behalf.
What if I miss a deadline?
You may receive penalty points and eventually financial penalties. We help make sure this never happens.
Explore related services
A situation rarely fits one box neatly — here is what else often applies.
Get ready for MTD
If you are affected by Making Tax Digital, now is the time to prepare – contact us to discuss a smooth transition.