Making Tax Digital (MTD) – What It Means for Your Business

From April 2026, many sole traders and landlords will need to follow new HMRC rules under Making Tax Digital (MTD) for Income Tax.

Instead of submitting one tax return each year, you’ll be required to keep digital records and submit updates throughout the year.

It may sound like a big change — but with the right setup, it can be simple and easy to manage.

Who MTD Applies To

MTD for Income Tax will be introduced in phases:

  • From April 2026 – Income over £50,000

  • From April 2027 – Income over £30,000

  • From April 2028 – Income over £20,000

This applies to:

  • Sole traders

  • Self-employed individuals

  • Landlords

What You’ll Need To Do

Under MTD, you’ll need to:

Keep Digital Records

Your income and expenses must be recorded using software such as Xero or QuickBooks.

Submit Quarterly Updates

You’ll send a summary of your income and expenses to HMRC every quarter:

  • 6 April – 5 July → Deadline: 7 August

  • 6 July – 5 October → Deadline: 7 November

  • 6 October – 5 January → Deadline: 7 February

  • 6 January – 5 April → Deadline: 7 May

These are not final figures — they are regular updates to keep everything on track.

Finalise Your Figures at Year End

At the end of the tax year, you’ll complete:

  • End of Period Statement (EOPS) – finalises your business income

  • Final Declaration – replaces your Self Assessment tax return

Deadline: 31 January

What This Means in Practice

MTD moves you from:

  • One annual tax return

To:

  • 4 quarterly updates

  • 1 year-end finalisation

This means your bookkeeping needs to be kept up to date throughout the year, rather than leaving everything until the last minute.

Why Many Businesses Need Support

With more frequent deadlines and digital requirements, many sole traders and small businesses will need help with:

  • Keeping records organised and up to date

  • Using accounting software

  • Meeting deadlines

  • Ensuring everything is submitted correctly

How I Can Help

I provide MTD-ready bookkeeping and support, helping you:

  • Get set up on Xero or QuickBooks

  • Keep your records accurate and up to date

  • Stay on top of deadlines

  • Avoid last-minute stress

Everything will be explained clearly, so you always understand your numbers.

Get Started

If you’d like help getting ready for MTD or want to make sure your bookkeeping is already compliant:

Call me directly on 07852 738044
Or message me on WhatsApp

MTD Made Simple

MTD doesn’t have to be complicated. With the right systems in place and ongoing support, it becomes part of your normal routine — keeping your business organised and under control all year round.