Making Tax Digital (MTD) is HMRC's long-running programme to move tax record-keeping and submissions fully online. If you're VAT-registered it already affects you — and the next big step, MTD for Income Tax Self Assessment, is being rolled out in phases from April 2026 for sole traders and landlords with qualifying income above HMRC's thresholds.
The headline change is simple: paper records and once-a-year spreadsheets are being replaced by digital records and more frequent online updates. It sounds like more work, but with the right software in place it usually means less.
What MTD means in practice
- Keep your business records digitally, not on paper or in standalone spreadsheets
- Use MTD-compatible software such as Xero, QuickBooks or Sage
- Send HMRC quarterly updates of your income and expenses
- Submit a final declaration after the tax year end to confirm everything
How to get ready
The best thing you can do now is move to cloud accounting software and get into the habit of keeping records up to date through the year. Once you're set up, quarterly submissions become a quick, routine task rather than a once-a-year scramble.
We help clients choose the right software, get their records in order, and we handle the submissions on their behalf — so MTD becomes something you never have to worry about.
