Making Tax Digital – Get Ready with Confidence
Making Tax Digital (MTD) for Income Tax is the biggest change to Self Assessment in a generation. Instead of submitting one annual tax return, many sole traders and landlords will need to keep digital records and send quarterly updates to HMRC. It may sound daunting, but we’ll make the transition straightforward and stress-free.
Helping you prepare for Making Tax Digital
Whether you’re already within the new rules or your start date is approaching, we’ll help you understand exactly what’s required. From choosing the right software to managing your quarterly submissions, we’ll ensure you’re fully prepared and compliant.
MTD Eligibility
We'll confirm if and when Making Tax Digital applies to you.
Cloud Software
Helping you choose and set up HMRC-approved accounting software.
Digital Bookkeeping
Keeping accurate digital records throughout the year.
Quarterly Updates
Preparing and submitting your quarterly updates to HMRC.
End of Period Statements
Completing your annual end-of-period reporting correctly.
Ongoing Support
Expert guidance whenever you need it.
A new way of managing your tax affairs
Making Tax Digital replaces the traditional annual Self Assessment process with digital record keeping and regular submissions to HMRC.
Rather than submitting one tax return each year, you’ll be required to:
- Keep digital records of your income and expenses
- Submit quarterly updates through MTD-compatible software
- Complete an End of Period Statement for each business
- Submit a final declaration confirming your tax position for the year
We’ll guide you through every step, making sure you’re fully compliant without the added stress.
When does Making Tax Digital apply?
Making Tax Digital for Income Tax is being introduced in stages.
HMRC uses your most recent Self Assessment tax return to determine when you must comply, so it’s worth checking your position well before your start date.
From 6 April 2026
For individuals with qualifying self-employment and/or property income over £50,000, based on their 2024/25 Self Assessment tax return.
From 6 April 2027
The threshold reduces to over £30,000.
From 6 April 2028
The threshold reduces again to over £20,000.
Making the transition simple
Preparing for Making Tax Digital doesn’t have to be complicated.
We’ll help you by:
- Checking whether and when MTD applies to you
- Setting up compatible cloud accounting software
- Keeping your digital records accurate
- Managing your quarterly submissions
- Ensuring you remain compliant with HMRC requirements
Even if you’re not yet required to join Making Tax Digital, we’ll help you prepare now so the transition is seamless when your time comes.
Software that works for your business
You’ll need HMRC-recognised software to comply with Making Tax Digital.
We’ll recommend the most suitable platform for your business, set everything up correctly and provide as much support as you need, whether you’d like to manage your own records or leave everything to us.
Compatible software includes platforms such as Xero, QuickBooks and FreeAgent.
Who we help
Choose the option that best describes you and we’ll show you the services most relevant to your business.Sole Traders
Helping self-employed businesses prepare for the new requirements.
Landlords
Supporting landlords with digital record keeping and reporting.
Growing Businesses
Helping businesses move from spreadsheets to cloud accounting.
New Business Owners
Setting up compliant bookkeeping from the beginning.
Existing Accounting Software Users
Making sure your current software is ready for MTD.
Frequently asked questions
Do I need to do anything before 2026?
If your qualifying income exceeded £50,000 on your 2024/25 tax return, you’ll need to comply from 6 April 2026 (or 1 April 2026 if you prepare your accounts to 31 March). It’s worth checking your position now so your records and software are ready well in advance.
What software do I need for Making Tax Digital?
You’ll need HMRC-recognised software such as Xero, QuickBooks or FreeAgent. We’ll recommend the right solution for your business, set everything up and either train you to use it or manage it on your behalf.
What happens if I don't comply with Making Tax Digital?
HMRC can issue penalties for late quarterly updates and missed final declarations, similar to the existing Self Assessment penalty system. Preparing early and using compliant software will help you avoid unnecessary penalties.
Not sure when Making Tax Digital applies to you?
Whether you’re already affected or simply planning ahead, we’ll help you understand the new rules, prepare your bookkeeping and make the move to Making Tax Digital with confidence.
Get in touch today to arrange a free consultation and find out how AC Accountancy Solutions can help.
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