Worried about Making Tax Digital? Dont be... we have got you covered.
Making Tax Digital is changing how sole traders and landlords keep financial records and report information to HMRC.
APJ Accountancy can help you understand when MTD applies to you, get your records and software ready, and provide ongoing accounting and compliance support.
HMRC is introducing Making Tax Digital for Income Tax in phases according to qualifying income:
· From 6 April 2026: qualifying income over £50,000, based on the 2024/25 tax year.
· From 6 April 2027: qualifying income over £30,000, based on the 2025/26 tax year.
· From 6 April 2028: qualifying income over £20,000, based on the 2026/27 tax year.
The rules can apply where you receive income from self-employment, property, or both. If you have more than one relevant source, the qualifying-income test needs to be considered across the relevant income sources.
What Does Making Tax Digital Mean for You?
If you are required to use MTD for Income Tax, HMRC requires digital records and quarterly updates using compatible software. For many sole traders and landlords, this means moving from a mainly annual accounting routine towards more regular digital record keeping.
Digital Record Keeping
Help establishing an efficient digital bookkeeping process for your business or property records.
MTD-Compatible Software
Support selecting and setting up an appropriate accounting solution for your circumstances.
Quarterly Updates
Ongoing support with maintaining records and preparing the information required for MTD reporting.
Year-End Support
Continued accounting and tax support so your records support an accurate year-end tax position.
We’ll Help You Get MTD Ready
You should not have to become an accounting-software expert simply because HMRC is changing the reporting system. Our approach is to make the transition as straightforward as possible and provide the level of ongoing support that suits your circumstances.
MTD Readiness Review
We review your current accounting and record-keeping arrangements and identify changes you may need to make.
Software & Digital Records
We help you establish an appropriate digital record-keeping process and understand the information that needs to be maintained.
Regular Bookkeeping Support
If you would rather not manage all the bookkeeping yourself, talk to us about ongoing support.
MTD Reporting Support
We help you stay organised for the reporting requirements applying to your circumstances.
Year-End Accounting & Tax
We continue to help you understand your overall tax position and plan ahead.
MTD for Sole Traders
If you are self-employed, we can help you move from traditional or manual record keeping to a practical digital process that supports MTD compliance and gives you better visibility of your business records. Whether you currently use spreadsheets, accounting software or mainly organise records at the end of the year, we can help you prepare for the reporting requirements that apply to you.
Book your Free Consultaiton: MTD HELP FOR SOLE TRADERS
MTD for Landlords
Making Tax Digital can also affect individuals receiving property income. We can help landlords organise property records digitally, understand when the rules apply and establish an efficient process for maintaining the information required throughout the year.
Book your Free Consultaiton:MTD HELP FOR LANDLORDS
Frequently Asked Questions
Who needs to use MTD for Income Tax?
The main test concerns sole traders and landlords registered for Self Assessment who receive self-employment or property income, or both, and whose qualifying income exceeds the applicable threshold.
When does MTD start?
The phased thresholds are over £50,000 from 6 April 2026, over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028, with HMRC using the relevant earlier tax year to determine when the requirement begins.
I am a landlord. Could MTD apply to me?
Yes. Property income is one of the sources considered for MTD for Income Tax.
What if I have both self-employment and property income?
Both sources are relevant when considering qualifying income.
Do I need accounting software?
Those within MTD for Income Tax need to maintain digital records and send quarterly updates using compatible software.
Can someone be exempt?
Yes. HMRC guidance provides both automatic exemptions and exemptions that need to be applied for, including circumstances involving digital exclusion. Eligibility depends on the individual circumstances.
Don’t Wait Until Your First MTD Deadline
The best time to prepare is before MTD becomes a last-minute compliance exercise. Talk to APJ Accountancy about your current record keeping, whether MTD applies to you and what you may need to change.
We can help you establish a practical approach for your business or property records.
