Making Tax Digital (MTD): What It Means for You
Making Tax Digital (MTD) is changing the way tax records are kept and returns are submitted. Whether you’re a sole trader or a landlord, the rules apply differently – but in both cases, it means moving to digital record-keeping and submitting returns directly to HMRC through approved software.
For Sole Traders
If you’re a sole trader with income above HMRC’s threshold, you’ll soon be required to:
- Keep digital records of your business income and expenses.
- Use HMRC-recognised MTD-compatible software to store those records.
- Send quarterly updates to HMRC, rather than waiting until the end of the tax year.
This is a big shift from the traditional Self-Assessment process, but with the right systems in place, it can save you time, reduce errors, and give you a clearer picture of your finances throughout the year.
We can help you choose the right software, set up your records, and keep you compliant – so MTD becomes simple, not stressful.
For Landlords
If you’re a landlord earning rental income above the MTD threshold, you’ll also need to:
- Keep digital records of your property income and expenses.
- Submit quarterly updates to HMRC through approved software.
- File an end-of-year finalisation to confirm your tax position.
Even if you only have one property, MTD still applies once your rental income crosses the threshold. For landlords managing multiple properties, moving to digital records can actually make life easier, helping you track income, expenses, and profits property-by-property.
We’ll guide you through the process, recommend software that suits landlords, and make sure your submissions are done right and on time.
Making Tax Digital (MTD) makes it easier for businesses and individuals to record and declare tax to HMRC. Under the new rules, HMRC require eligible businesses to record transactions digitally and submit VAT returns to HMRC using compatible accounting software.
Making Tax Digital for Income Tax also known as MTD for Income Tax Self-Assessment (MTD ITSA) will change the way millions of business owners and landlords report their earning to HMRC, in essence, making it easier for businesses and individuals to record and declare their tax.
Ready to Get MTD-Ready?
Whether you’re a sole trader or landlord, our team can take the stress out of Making Tax Digital.
Contact us today to find out how we can support you with software, training, and ongoing compliance.