Making Tax Digital
Making Tax Digital is part of HMRC’s move towards digital tax records and digital submissions. VAT-registered businesses are already required to keep digital records and submit VAT returns using compatible software. Making Tax Digital for Income Tax is also being introduced in stages for many sole traders and landlords.
We help clients prepare for Making Tax Digital by reviewing their bookkeeping records, advising on suitable software and helping set up practical digital record keeping systems.
Our aim is to make the transition manageable and to help clients maintain records in a way that supports accurate reporting.
Our services include:
- Making Tax Digital for VAT support
- Making Tax Digital for Income Tax readiness checks
- Digital bookkeeping setup
- Review of spreadsheet and software records
- Cloud accounting software support
- VAT return submission support
- Quarterly update preparation support where applicable
- Practical training on maintaining digital records
Making Tax Digital for Income Tax – Phased Introduction
| MTD Start Date | Tax Year Reviewed by HMRC | Qualifying Income Threshold* |
| 6 April 2026 | 2024/25 tax year | More than £50,000 |
| 6 April 2027 | 2025/26 tax year | More than £30,000 |
| 6 April 2028 | 2026/27 tax year | £20,000 or more |
| Future date (to be announced) | To be confirmed | Partnerships and other taxpayer groups |
* Qualifying income generally includes gross income from self-employment, UK property income, or a combination of both before expenses are deducted.
Example
| Tax Year | Gross Self-Employment and Property Income | MTD Start Date |
| 2024/25 | £55,000 | 6 April 2026 |
| 2025/26 | £35,000 | 6 April 2027 |
| 2026/27 | £22,000 | 6 April 2028 |
What will taxpayers need to do?
Businesses and landlords within the scope of Making Tax Digital for Income Tax will generally be required to:
- Keep digital accounting records
- Use compatible software
- Submit quarterly updates to HMRC
- Complete an end-of-year finalisation process
- Maintain records in accordance with HMRC’s digital requirements
These obligations apply once the relevant qualifying income threshold is met.
Who this service is for
This service is suitable for VAT-registered businesses, sole traders, landlords and businesses moving from paper or spreadsheet records to digital accounting software.
Frequently asked questions
Who needs to comply with Making Tax Digital?
Making Tax Digital currently applies to VAT-registered businesses and is being introduced in stages for many sole traders and landlords based on qualifying income.
Do I have to use cloud accounting software?
You need digital records and compatible software. The best option depends on your business records, VAT position and reporting requirements.
Can you help move my records to digital software?
Yes. We can help review your current records and support the move to a suitable digital bookkeeping system.
How does HMRC decide when I join Making Tax Digital?
HMRC looks at qualifying income from an earlier tax year. For example, if your qualifying income for the 2024/25 tax year exceeds £50,000, you will generally be required to comply with Making Tax Digital for Income Tax from 6 April 2026.
Get in touch
If you need help with Making Tax Digital, contact us and we will review your current record keeping process.
