Making Tax Digital accountants
Making Tax Digital for Income Tax requires sole traders and landlords to keep digital records and send HMRC a quarterly update instead of one annual tax return. It applies from April 2026 above £50,000 of qualifying income and April 2027 above £30,000. We set up your software, file every quarterly update and handle your year-end.
MTD for Income Tax is the biggest change to personal tax since Self Assessment launched in 1997. Instead of one return each January, you will keep digital records and send HMRC four quarterly updates plus a final declaration. Most people find out too late, pick the wrong software, and spend their first year firefighting. We do the whole thing for you.
What is included
A qualifying income review
We work out whether MTD applies to you, from which April, and what your combined self-employment and property income actually comes to. Getting this wrong by a few hundred pounds changes your start date by a full year.
Software set up and paid for
We choose the right package for how you actually work, Xero, QuickBooks, FreeAgent, Sage, or bridging software over your existing spreadsheet, then set it up, connect your bank feeds and test a submission before it matters.
All four quarterly updates filed
We prepare and submit every quarterly update to HMRC by the 7th of the month following each quarter end. You never touch an HMRC portal.
Your final declaration
The replacement for the old Self Assessment return. We pull in everything else, employment, dividends, interest, pensions, capital gains, and file the lot.
Deadline management
We tell you what is due and when, well before it is due. No January panic.
Penalty protection
MTD uses a points-based late submission system. Miss four quarterly updates and you get a £200 fine, then £200 every time after. We file on time so you never collect a point.
How it works
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Check if you are affected
A two-minute call, or use our qualifying income checker. We confirm your start date in writing.
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Get your software right
We set up and configure your package, connect bank feeds, and migrate your existing records.
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Run one quarter together
We walk you through your first quarterly update so you can see exactly what happens.
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We take it from there
Every quarter after that, we chase what we need, file on time, and tell you what you owe.
Making Tax Digital: your questions answered
When does Making Tax Digital for Income Tax start?
It started in April 2026 for people with qualifying income above £50,000. It extends to income above £30,000 in April 2027, and above £20,000 in April 2028.
What counts as qualifying income?
Your gross self-employment turnover plus your gross property income, before expenses. It is turnover, not profit. This catches a lot of people out. Employment income, dividends and savings interest do not count towards the threshold.
Do I still file a Self Assessment tax return under MTD?
No. The annual return is replaced by four quarterly updates plus a final declaration. The final declaration does the same job as the old return but sits on top of the quarterly data.
What happens if I miss a quarterly update?
HMRC uses a points system. You get one point per missed submission, and at four points you are fined £200, then £200 for every further miss. Points expire after two years of full compliance.
Can I keep using spreadsheets under MTD?
Yes, as long as you connect the spreadsheet to HMRC through approved bridging software. We set that up for clients who would rather not move to full cloud accounting.
How much does an accountant charge for MTD?
Our MTD for Income Tax service starts at £35 a month, which covers software, all four quarterly updates and your final declaration. The fee is fixed and agreed in writing before we start.