Simple, Compliant, and Stress Free

Making Tax Digital (MTD) for IT

Making Tax Digital for Income Tax Self Assessment (MTD for IT) is HMRC’s new way of managing tax for self employed individuals and landlords. It replaces the traditional annual tax return with a more modern, digital approach designed to reduce errors and improve accuracy.

If you earn income from self employment or property, MTD for IT will change how and when you report your income to HMRC—but with the right support, it doesn’t need to be complicated.

What is MTD for IT?

MTD for IT is part of HMRC’s wider Making Tax Digital initiative. Under the new rules, individuals must:

  • Keep digital records of income and expenses
  • Use HMRC compatible software
  • Submit quarterly updates to HMRC
  • Complete a final end of period statement instead of a single annual tax return

The aim is to give taxpayers a clearer, up to date view of their tax position throughout the year.

Making Tax Digital (MTD) for IT

Who Does MTD for IT Apply To?

MTD for IT will apply to:

  • Self employed individuals, and/or
  • Landlords

who have qualifying income over £50,000 per year from April 2026, with those earning over £30,000 expected to follow later.

If you fall into these categories, preparation is essential to stay compliant and avoid penalties.

What Changes Compared to the Current System?

Instead of submitting one Self Assessment tax return each year, MTD for IT requires:

  • Digital record keeping Paper records and spreadsheets alone will no longer be enough.
  • Quarterly submissions You’ll send HMRC updates every three months, summarising income and expenses.
  • End of year reporting You’ll confirm your figures and make any accounting adjustments at the end of the tax year. While this may sound like more work, modern accounting software can automate much of the process.

Benefits of MTD for IT

When set up correctly, MTD for IT can actually make managing your tax easier:

  • Fewer errors thanks to digital records
  • Better cash flow planning with regular tax estimates
  • Less last minute stress at year end
  • More visibility over your business performance

The key is choosing the right software and getting expert guidance when needed.

Benefits of MTD for IT

How We Can Help

We take the stress out of MTD for IT by supporting you at every stage:

  • Assessing whether MTD for IT applies to you
  • Helping you choose and set up MTD compatible software
  • Ensuring your records meet HMRC requirements
  • Preparing and submitting quarterly updates
  • Completing your end of year statement accurately and on time

Our goal is to keep you compliant while saving you time and giving you confidence in your numbers.

Get Ready for MTD for IT

MTD for IT represents a significant change, but you don’t have to face it alone. With the right systems and support in place, it can be a smooth and straightforward transition.

Contact us today to find out how we can help you prepare for Making Tax Digital for Income Tax—and keep your business moving forward.