Keep digital records
Record your business income and expenses digitally, using a suitable setup.
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MTD explained
Making Tax Digital.
Explained simply.
Making Tax Digital changes how you keep and send your business records. Here are the main things to understand.
When does it apply?
Start with your gross self-employment and property income together, before deducting costs. Employment pay and dividends are not included in this entry threshold.
| Relevant tax return | Qualifying income | MTD starts |
|---|---|---|
| 2024/25 | Over £50,000 | 6 April 2026 |
| 2025/26 | Over £30,000 | 6 April 2027 |
| 2026/27 | Over £20,000 | 6 April 2028 |
These are entry thresholds. Exemptions and changes in your circumstances can affect your position. Falling below a threshold after joining does not automatically mean you can stop.
What do you actually need to do?
Send quarterly updates
Send totals from those records through compatible software for each relevant business. These are summaries, not four separate tax returns.
Complete the annual return
Bring together your adjustments and other income, then submit your annual tax return through compatible software.
Can an accountant do it for me?
Yes. You can keep the records and ask us to submit the updates, or ask us to handle the bookkeeping too. You still need to provide complete information in time and approve the work where required.
What if technology is difficult for me?
If using digital tools is not reasonable or practical because of your circumstances, an exemption may be available. We discuss your situation and point you towards HMRC's exemption process.
You do not need to solve everything today.
Start by checking your income and how you currently keep your records. We can work through the next steps from there.
Find the support you need ↗Checked 4 November 2026. Source: HMRC: using Making Tax Digital for Income Tax. General guidance, subject to your circumstances.
Your questions, answered.
Is MTD four tax returns a year?
No. The quarterly updates summarise your digital business records. You still submit one annual tax return, which brings your income and tax adjustments together.
Will I have to pay tax every quarter?
Quarterly reporting does not itself introduce quarterly tax payments. Existing Self Assessment payment dates and payments on account still apply where relevant.
Can I keep using my spreadsheet?
Possibly. A suitable spreadsheet can be part of your records, but it needs the right software connection to send information to HMRC. We check your setup before agreeing the service.
I am behind with my bookkeeping. Can you help?
Yes, we can start by looking at what needs bringing up to date. Catch-up work is quoted separately so you know the cost before we begin.
Do you work with clients outside Stafford?
We work online with sole traders across the UK, including those with rental income. You can share records digitally and speak to us by phone or video.
Put the next steps in place
Check the MTD quarterly deadlines for 2026/27, then see how support for sole traders works. If you are ready to compare costs, review the submission-only and managed plans.
