Making Tax Digital

Making Tax Digital (MTD) is a government initiative designed to make it easier for individuals and businesses to get their tax right and keep on top of their finances. It’s all about moving away from paper records and switching to digital accounting software.

From April 2026, most sole traders and landlords earning over £50,000 will need to follow the new MTD for Income Tax rules. This means:

• Keeping digital records of your income and expenses
   
• Using MTD-compatible software to track everything
   
• Sending quarterly updates to HMRC instead of waiting for the annual Self Assessment deadline
   
• Submitting an End of Period Statement (EOPS) and final declaration after the year ends
   

If you earn between £30,000 and £50,000, you’ll be brought into MTD a bit later (likely in 2027, but it's good to be prepared!).

• Make sure you’re using cloud-based bookkeeping software like Xero or FreeAgent
   
• Start getting comfortable with tracking your finances digitally
   
• Work with a bookkeeper who can help you stay on top of it all and get everything set up in time
   

I can help you make the switch stress-free, so you’re ready well before the deadline. No last-minute panics — just peace of mind.

Got questions about how MTD will affect you?

You can use the links below for more information.