MAKING TAX DIGITAL

for INCOME TAX

If you are among those impacted in 2026, you should either have had a letter from HMRC already, notifying you that you must join MTD IT, or you should get a letter within the coming weeks.

We may well have discussed joining MTD for IT with you already, but if this is not the case, and you get a letter from HMRC unexpectedly, please do let us know and we can work with you to see what needs to be done.

Choosing your Options

We have four options to choose from depending how much or how little help you need from us to get started.

Hands On - You do most of the work
Share the Load - You do the core work and we will do the quarterly filing
Managed - You gather & share the information digitally and we will do the rest
Hands Off - You bring in or send your paperwork to us and we will do the rest

MTD for IT represents a major change in the way you interact with HMRC. It is important that you have the right software in place, and are confident using it: alternatively, you will need to arrange for a competent third party to maintain the records and make the submissions on your behalf.

The need to send updates to HMRC each quarter is something that moves record keeping and reporting very much closer to real time.

Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (MTD IT) is being phased in from 6 April 2026 for sole traders and landlords with qualifying income over particular thresholds. From April 2026, sole traders and landlords with qualifying income more than £50,000 for the 2024/25 tax year will have to join MTD IT.

Under the new rules, taxpayers must keep digital records of income and expenses. MTD-compatible software is then used to send updates of income and expenses to HMRC every three months.

In addition to these quarterly updates, there is an end-of-year tax return, also filed via MTD software.

Download our detailed guide here

“Every client on their MTD for IT journey with us will have one Champion to work with in our team”
They will help decide what is best for you & your business or property accounts and support you throughout the process of getting signed up and ready to go.

1. HANDS ON

You do most of the work - gathering the records, doing the bookkeeping and filing the quarterly submissions with HMRC.
We can get you set up on Xero Software and provide you with in-depth training if you don’t have any digital software but want to be self-sufficient.
At the end of the tax year we will prepare your accounts (from your bookkeeping records) and personal tax return as normal and complete the final MTD submission for you.
2. SHARE THE LOAD

You do the core of the work, gathering the records and doing the bookkeeping. We will take over to do the quarterly submission to HMRC for you, whilst casting our eye over your numbers to make sure everything is in order.
We can get you set up on Xero Software and provide you with in-depth training if you don’t have any digital software.
At the end of the tax year we will prepare your accounts (from your bookkeeping records) and personal tax return as normal and complete the final MTD submission for you.
3. MANAGED

You do the initial work, gathering the records (invoices and purchase receipts) and giving them to us digitally by email or uploaded as images into the software.
We will do all the bookkeeping and then file the quarterly submissions with HMRC.
We will set you up with Xero software and show you how to use it as much or as little as you would like.
At the end of the tax year we will prepare your accounts and personal tax return as normal and complete the final MTD submission for you.
4. HANDS OFF

You bring in or send your paperwork to us and we will upload it digitally into the Xero software, so that it acts as a full record for your business or property.
We will show you how to use the Xero software as much or as little as you would like.
We will do all the bookkeeping and then file the quarterly submissions with HMRC.
At the end of the tax year we will prepare your accounts and personal tax return as normal and complete the final MTD submission for you.

Choosing your Digital Software

We are happy to support our clients across a wide range of digital software to enable you to choose what best suits your requirements. Our software of choice for all things MTD is Xero.

We will be using Xero for any and all quarterly submissions that we make on behalf of clients to ensure we are able to offer sound advice and well-researched technical expertise. This focus will mean that we can continue to give excellent value for money and peace of mind.