Making Tax Digital
Four submissions a year instead of one.
Making Tax Digital for Income Tax changes how sole traders and landlords report to HMRC. It is the biggest change to self-assessment in a generation, and it is arriving in stages. Here is what it means, in plain English.
Tax year 2026/27
The dates that matter.
These are quarterly updates, not tax returns. The tax return for 2026/27 is still due by 31 January 2028.
Quarter 1
7 August 2026
Quarter 2
7 November 2026
Quarter 3
7 February 2027
Quarter 4
7 May 2027
Dates as published by Lewis in his guide for Devon businesses.
What is required
Three obligations, not one.
Most of the anxiety around Making Tax Digital comes from people assuming it is one enormous change. It is three fairly ordinary ones.
Keep digital records
Your income and expenses have to live in software, or in a spreadsheet connected to software. Paper records and a shoebox no longer satisfy the requirement on their own.
Ongoing
Send four quarterly updates
Summaries of your income and allowable expenses for each quarter, submitted from that software directly to HMRC.
4 × a year
File your return and pay as usual
The final return still follows, and the tax is still due by 31 January. This part has not changed.
31 January
Where I come in
You can hand the whole thing over.
Making Tax Digital is exactly the sort of obligation that is tedious for you and routine for me.
I am a certified QuickBooks ProAdvisor, so getting you onto compatible software and keeping the records in a state HMRC will accept is ordinary work here rather than a special project.
Self-Assessment MTD Submissions
Your systems set up compliant, and all four quarterly updates handled on your behalf.
from £80per quarter
Self-Assessment Tax Return
The return that still follows the four quarterly updates.
from £200per year
QuickBooks ProAdvisor Support
If you would rather do the submissions yourself but want the software set up properly first.
from £50per month
Questions
What people ask about MTD.
Does Making Tax Digital apply to me?
It applies to sole traders and landlords, and it is being introduced in stages based on your gross income from self-employment and property. If your income is above the current threshold you will be brought in; if it is below, you will not be yet. Because the thresholds step down over several years, the honest answer for most people is not whether but when. Send me your figures and I will tell you which stage you fall into.
What actually changes?
Two things. You have to keep your records digitally, in software rather than on paper or in a standalone spreadsheet. And you have to send HMRC four updates a year instead of one return. The tax return itself does not go away, and neither does the January payment date.
Do the quarterly updates replace my tax return?
No, and this is the most common misunderstanding. The quarterly updates are summaries sent through the year. You still file a tax return afterwards, and the tax is still due by 31 January as it always was.
Do I have to use a particular piece of software?
It has to be software HMRC recognises as compatible, but there is a lot of choice. QuickBooks, Xero and Sage are the most widely used. If you are a landlord, something built for property such as Hammock may suit you better. If you are comfortable in a spreadsheet, bridging software can connect what you already do to HMRC rather than making you start again.
I have never used accounting software. Is this going to be awful?
It is usually less painful than people expect, and for a lot of businesses it ends up being an improvement rather than just an obligation. Being able to see where you actually are, mid-year, tends to be worth having. As a certified QuickBooks ProAdvisor, getting people set up properly on software is a large part of what I do.
Not sure whether this applies to you?
Book a free 30-minute consultation, tell me your figures, and I'll tell you which stage you fall into and what you need to do about it.
Free 30-minute consultation. No obligation.