MTD for Income Tax is now live for some sole traders and landlords. Check your position

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Making Tax Digital for Income Tax

MTD is here.
We’ll keep it simple.

If you are a sole trader or landlord, the way you report income to HMRC may be changing. We’ll check when the rules affect you, set up the right software and keep every update on track.

Get your free MTD check See what changes
AAT licensedXero & QuickBooks supportLocal to Bexhill & Hastings
Quick MTD checker

Could MTD apply to you?

Enter an estimate of your annual gross income before expenses. This provides an initial guide; your relevant tax return decides your actual start date.

Below current thresholds£0

MTD is not currently mandatory

At £20,000 or less of qualifying income, MTD for Income Tax is not currently mandatory. Keep checking as your income or circumstances change.

Check my exact position

Who it affects

One threshold.
All qualifying income.

MTD applies to individuals with self-employment or UK property income. If you have more than one trade or rental property, the gross income is combined when checking the threshold.

✓

Included

  • Sole trader turnover
  • UK rental income
  • Multiple trades combined
  • Jointly owned property share
×

Not included in the threshold

  • PAYE employment income
  • Dividends and savings interest
  • Pension income
  • Partnership income

What changes

From one annual rush
to a simple digital rhythm.

01

Keep digital records

Record business income and expenses in compatible software throughout the year.

02

Send quarterly updates

Submit light-touch summaries to HMRC. These are not four full tax returns.

03

Complete your tax return

Finalise the year and submit your tax return through compatible software by 31 January.

Quarterly deadlinesSame dates each year
Quarter 17 August
Quarter 27 November
Quarter 37 February
Quarter 47 May

The first MTD year

Your deadlines,
from start to finish.

This example follows the first mandated group from digital record keeping through to its first MTD-enabled tax return.

  1. 01

    Start keeping digital records

    The first mandated group begins recording business income and expenses in MTD-compatible software.

  2. 02

    First quarterly update

    Income and expense totals for the first quarter are sent to HMRC.

  3. 03

    Second quarterly update

    The next three months of digital records are summarised and submitted.

  4. 04

    File the previous year as normal

    Your 2025/26 Self Assessment still covers the year before MTD began.

  5. 05

    Third quarterly update

    Your third in-year summary is sent through compatible software.

  6. 06

    Fourth quarterly update

    The final quarterly update completes the first MTD reporting cycle.

  7. 07

    First MTD tax return deadline

    The 2026/27 tax return is finalised and submitted through compatible software.

Making Tax Digital packages

Every package includes
quarterly HMRC submissions.

Choose the level of record keeping and bookkeeping support that works for your business.

01

Bronze

Essential MTD and year-end support when you keep your own digital records.

£35/month
  • Quarterly HMRC submissions
  • Annual accounts preparation
  • Self Assessment tax return
  • MTD software setup guidance
  • Deadline reminders
Choose Bronze
Most popular02

Silver

Quarterly MTD submissions with regular bank bookkeeping and year-end accounts.

£55/month
  • Everything in Bronze
  • Quarterly HMRC submissions
  • Up to 50 bank transactions each month
  • Monthly bank categorisation and reconciliation
  • Quarterly records review before submission
Choose Silver
03

Gold

Complete MTD, bookkeeping and VAT support for busy business owners.

£105/month
  • Everything in Silver
  • Quarterly HMRC submissions
  • Up to 250 bank transactions each month
  • VAT return preparation and submission
  • QuickBooks and Xero support
Choose Gold

Software subscriptions and work outside the stated package scope are agreed separately. We will confirm the right setup and a fixed quote before work begins.

Side by side support

You run the business.
We’ll manage the change.

MTD should not mean more stress or more time away from your business. We provide practical, friendly support from setup through to the final submission.

Call 01424 272821
01

Check your start date

We review your qualifying income and confirm when MTD applies.

02

Choose and set up software

We help you use a practical system that suits the way you work.

03

Maintain digital records

Choose bookkeeping support or keep the records yourself with our guidance.

04

Submit every update

We keep track of the deadlines, quarterly updates and year-end tax return.

MTD Resource Centre

Everything you need
to get MTD ready.

Start with the practical guides below, then use the official HMRC resources for the latest detailed rules.

01

Getting ready in five steps

Confirm your start date, review your records, choose software, authorise your accountant and begin digital bookkeeping before the tax year starts.

02

What digital records mean

Business income and expenses need to be captured digitally. Paper receipts can still exist, but the required information must be recorded in your software.

03

Quarterly updates explained

The updates are summaries of income and expenses, not four full tax returns. They also do not create four new tax payment dates.

04

Landlords and multiple businesses

Qualifying income from sole trades and property is combined for the threshold. The reporting setup may need to reflect each business or property source.

Official guidance

Useful GOV.UK resources

Check if and when MTD appliesHMRC’s current eligibility and start-date guidance.Work out qualifying incomeWhat counts towards the £50,000, £30,000 and £20,000 thresholds.Use MTD for Income TaxHMRC’s step-by-step guide to records, updates and the tax return.Check possible exemptionsAutomatic exemptions and circumstances where an application may be possible.

Straight answers

MTD questions,
answered simply.

Is the threshold based on profit or turnover?

It is based on your gross qualifying income before expenses. Your self-employment and UK property income are added together. PAYE salary, dividends and savings income do not count towards the MTD threshold.

Will I have to pay tax every quarter?

No. Quarterly updates are summaries of income and expenses, not extra tax returns, and they do not create four separate tax payment dates. Your normal Income Tax payment dates continue to apply.

Can I continue using spreadsheets?

Potentially, but the records and submissions must remain digitally linked using compatible or bridging software. We can review your current process and recommend the simplest compliant option.

What if I struggle to use digital software?

Some people may qualify for an exemption, including where they are digitally excluded. Applications are considered by HMRC based on individual circumstances, and we can help you understand the process.

Can Side by Side submit the quarterly updates for me?

Yes. Quarterly HMRC submissions are included in all three Making Tax Digital packages. The exact package depends on whether you maintain the digital records or would like us to handle bookkeeping too.

Do landlords have to follow the same rules?

The rules can apply to landlords registered for Self Assessment as well as sole traders. Gross property and self-employment income are combined when checking the threshold.

Is software included in the monthly package?

We include setup guidance and support. The most suitable software and any separate subscription cost will be confirmed with you before you commit to a package.

Free MTD readiness check

Not sure where you stand?

Send us your latest Self Assessment figures and we’ll help you understand your next step.

Book your free MTD check 01424 272821