Making Tax Digital (MTD) – Are You Ready for Your First Quarterly Submission?
Making Tax Digital (MTD) for Income Tax is now underway, and many sole traders and landlords are still unsure whether the new rules apply to them.
If your combined gross income from self-employment and property exceeded £50,000 in the 2024/25 tax year, you should now be keeping digital records and submitting quarterly updates to HMRC using compatible software.
For most businesses using the standard tax-year reporting periods, the first quarter runs from 6 April to 5 July 2026. Your first quarterly update must then be submitted to HMRC by 7 August 2026.
Who is affected?
You may already need to comply if:
- You’re a sole trader with income over £50,000.
- You’re a landlord with rental income over £50,000.
- Your combined self-employment and rental income exceeds £50,000.
The rules will expand to those earning over £30,000 from April 2027 and £20,000 from April 2028.
What has changed?
Instead of preparing everything once a year, you’ll now:
- Keep digital business records.
- Submit quarterly income and expense updates.
- Complete a final year-end declaration.
This doesn’t necessarily mean paying tax four times a year, but it does mean keeping your bookkeeping up to date throughout the year.
How we can help
If you’re unsure whether Making Tax Digital applies to you, or you’d like help choosing software and meeting your deadlines, we’re here to help.
Getting set up correctly now can save time, reduce stress and help avoid unnecessary penalties.
Need advice?
Contact Mays Accounting Services today for friendly, professional support with Making Tax Digital.