Making Tax Digital: Your Quick & Easy Guide (No Faffing About!)

Right, let's get straight to it. Making Tax Digital (MTD) for Income Tax is on its way, and it's HMRC's big push to get everyone's tax affairs online. Think of it as ditching the old paper ways for something a bit more modern.

Who's In the Hot Seat & When?

If you're a sole trader or a landlord, or a bit of both, and your income hits these figures, you're in!

• April 2026: If your combined income was over £50,000 in the 2024/25 tax year.

• April 2027: If your combined income was over £30,000 in the 2025/26 tax year.

• April 2028: If your combined income was over £20,000 in the 2026/27 tax year.  

HMRC might be on the 'dog and bone' (phone) or sending letters from April 2025 to give you a heads-up, but it's still your responsibility to know if you're affected!  

What's the Gist?

Forget the annual tax return scramble. MTD means:

• Digital Records: No more shoeboxes of receipts! You'll need to keep all your income and expenses digitally. Every penny in, every penny out, logged properly.  

• Quarterly Check-ins: You'll send summaries of your income and expenses to HMRC every three months using special software. Think of it as a regular catch-up, not a yearly headache.  

• Get the Kit: You'll need MTD-compatible software. This is key! It'll handle your digital records and send those quarterly updates directly to HMRC.  

Why Bother Now?

Don't leave it till the last minute, or you'll be in a right pickle! Getting ready early means:

• No Rush: You can get comfortable with the new system at your own pace.

• Smooth Sailing: Avoid any last-minute panic or errors.  

• Optional Early Sign-Up: You can sign up early to test the waters before it becomes mandatory for you.  

We're Here to Help!

We know tax changes can feel like a bit of a headache, but that's what we're here for!

• Guidance: We'll help you figure out if and when MTD applies to you.

• Software Advice: We can recommend and help you get set up with the right software.

• Hands-On Support: We can manage your digital records on your behalf.

If you receive a letter from HMRC or have a few questions, don't hesitate to send us a message! We'll sort you out.