Making Tax Digital for Income Tax Support
Making Tax Digital for Income Tax is changing how many sole traders and landlords report income to HMRC. Instead of dealing with everything once a year, affected taxpayers will need to keep digital records, use compatible software and send quarterly updates.
How RD Accounting can help
- Check whether MTD applies to you
- Review your current record keeping
- Recommend suitable MTD-compatible software
- Help set up digital bookkeeping
- Prepare for quarterly updates
- Support your end-of-year tax position
- Help landlords and sole traders build a simple routine
Who is affected?
MTD for Income Tax applies to sole traders and landlords based on qualifying income from self-employment and/or property. The rollout starts from 6 April 2026 for those over £50,000, then from 6 April 2027 for those over £30,000, and from 6 April 2028 for those over £20,000, subject to HMRC rules and exemptions.
Why prepare now?
Leaving MTD preparation until the first quarterly deadline can create unnecessary stress. The earlier your digital records are set up, the easier it is to test your process, understand your tax position and avoid rushed decisions.
If you are a sole trader or landlord, MTD may mean changing from annual record sorting to regular digital record keeping. We can help you choose the right system and keep everything simple.
What is Making Tax Digital for Income Tax?
It is HMRC’s system requiring affected sole traders and landlords to keep digital records and send regular updates using compatible software.
When does MTD for Income Tax start?
It starts from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The threshold is due to reduce to over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.
Does MTD for Income Tax apply to limited companies?
The current MTD for Income Tax rollout is aimed at sole traders and landlords. Limited companies have different tax obligations.
Do landlords need to use MTD?
Landlords may need to use MTD if their qualifying property income, alone or combined with self-employment income, exceeds the relevant threshold.
Will I still need a tax return?
Affected taxpayers still need to finalise their tax position after the tax year. The process changes, but it does not remove the need to report accurately.
Can I keep using spreadsheets?
Spreadsheets may be possible in some cases if used with suitable bridging or compatible software, but the system must meet HMRC digital record and submission requirements.
Can RD Accounting set this up for me?
Yes. We can review whether you are affected, recommend software and help you build a practical digital bookkeeping routine.
