Making Tax Digital Accountants
Making Tax Digital (MTD) is replacing annual Self-Assessment with quarterly digital submissions and a final declaration. From April 2026, self-employed individuals and landlords over the income threshold must keep digital records and submit updates using HMRC-approved software.
Making Tax Digital (MTD) – Key Information for Self-Employed Individuals & Landlords
Making Tax Digital (MTD) is a government initiative designed to modernise the UK tax system. It means keeping digital records and submitting tax information to HMRC quarterly and electronically, using approved software. The aim is to make tax easier, more accurate, and more efficient for individuals and businesses.
Who does this affect?
MTD will affect individuals as detailed below:
- Self-employed individuals and landlords with a total business and/or property income (gross) above £50,000, in the year ended 05 April 2025, will be mandated to submit quarterly returns from April 2026.
- Business income, means your sales/turnover, NOT profit.
- From April 2027, it will also apply to those with income over £30,000.
- Then from April 2028, it will apply to all sole traders and landlords whose income is over £20,000.
What will change?
Under MTD for Income Tax, you’ll no longer file a single annual Self-Assessment return.
Instead, you’ll need to:
- Keep digital records of your income and expenses using MTD-compatible software (e.g., Xero, QuickBooks, FreeAgent) or on a spreadsheet.
- Send quarterly updates to HMRC summarising your income and expenses. If you keep your records on a spreadsheet you will need to file your returns using an HMRC approved bridging app.
- Submit a Final Declaration to confirm your overall income and tax position. This will include other income received in addition to your sole trader or landlord income. This replaces the year end self-assessment tax return we do now.
- However, if you have both landlord and sole trader income, you will be required to submit quarterly reports for both types of income.
When are the returns due?
Quarterly updates will be submitted to HMRC according to the quarter dates on the right. The default reporting period will be the tax quarter but a calendar quarter election can be made, which will stay in place until withdrawn. Each quarter a cumulative return will be required from the start of the year and this will allow corrections to the earlier periods in the year.
| Quarter | Tax period | Calendar Period | |
|---|---|---|---|
| 1 | 6 April – 5 July | 1 April – 30 June | 7 August |
| 2 | 6 April – 5 October | 1 April – 30 September | 7 November |
| 3 | 6 April – 5 January | 1 April – 31 December | 7 February |
| 4 | 6 April – 5 April | 1 April – 31 March | 7 May |
HMRC have assured us that there are currently no plans to change the way that tax liabilities are paid. The tax liability will need to be paid by 31 January of the next year and NOT quarterly.
What do you need?
To comply with MTD, you will need:
- MTD-compatible software (or spreadsheet with bridging app) to keep digital records and send quarterly updates.
- A Government Gateway account for access to HMRC’s digital services.
- Have a clear understanding of your income sources (especially if you have multiple businesses or rental properties).
- You will need to open a separate bank account, if you don’t have one already, for each source of income.
- This also applies to credit cards, have one for personal and one for business.
- Keep an eye out for our letters, emails and any further updates regarding Making Tax Digital from Treetops and HMRC.
How can Treetops help?
Once HMRC mandates you to make quarterly submissions Treetops will offer a range of flexible options to support our clients. The final declaration statement will be due by 31 January 2028 and will be used to generate your tax liability, as your annual tax return is now.
Option 1: File Your Own MTD Submissions
- You can choose to register for MTD and file your own quarterly submissions. Treetops will continue to prepare and submit your year-end tax return as usual.
- We will provide a free MTD-compliant spreadsheet for each income source, which you can use with a bridging app to submit your returns to HMRC.
- Please note: bridging apps are third-party tools, and a small fee will be payable to the software provider. You can find a list of HMRC-approved bridging apps here.
- If your annual turnover exceeds the VAT threshold (£90,000), we recommend using fully MTD-compliant software such as Xero, FreeAgent, Sage, or QuickBooks instead of the spreadsheet.
Option 2: You Keep Records, We File Quarterly
Treetops can register you for MTD and handle your quarterly submissions based on the records you maintain, either on the spreadsheet we provide or your chosen software.
Option 3: Assisted quarterly filing
We will also offer a more hands-on quarterly filing service:
- We will provide MTD-compliant software. We will need you to set up a separate bank account for each income source.
- The software allows us to automatically import bank transactions, while you can upload receipts and issue sales invoices directly from the platform.
Option 4: Full Bookkeeping & MTD Filing (Primarily for VAT Registered Clients)
We can take care of everything for you — from bookkeeping to quarterly submissions — using fully compliant MTD software:
If you’re unsure which option is right for you, we’re happy to discuss your needs and help you choose the most suitable solution.
If you’re unsure which option is right for you, we’re happy to discuss your needs and help you choose the most suitable solution.
Frequently Asked Questions Around Making Tax Digital
What if I am a non-resident?
If a non-UK resident uses the SA109 supplementary page (which is used to declare non-residence or claim double tax relief), they will not need to use MTDIT before April 2027.
What if I have a non-UK rental property?
UK residents will have to follow MTD if they have foreign property income that meets the threshold (this may be combined with other self-employment or UK property income).
Got a specific question? Feel free to reach out to our making tax digital experts today.
Contact Treetops Chartered Accountants for help with Making Tax Digital
At Treetops Chartered Accountants, we’re here to support you through every step of Making Tax Digital. Whether you’re self-employed, a landlord, or simply unsure about what MTD means for you, our dedicated team is ready to help.
We’ll continue to update this page as more information becomes available.
For any questions or support related to MTD, please email us at [email protected]. This inbox is monitored directly by our MTD team, so you’ll receive the most efficient and accurate response. Alternatively, you can contact us by phone or through our online form.
Helpful Articles
MTD isn’t always a straightforward process, but here at Treetops; we make it as clear as possible. Here’s a few helpful insights from us to help you learn more about Making Tax Digital.
Switching from sole trader to limited company – Does MTD still apply?
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How to work out your qualifying income for Making Tax Digital for Income Tax
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Step-by-step guide to preparing for quarterly reporting MTD ITSA
As of April 2026, Making Tax Digital for Income Tax