Making Tax Digital (MTD) changes how sole traders and landlords report to HMRC. Instead of one tax return a year, you keep digital records and send HMRC a short update every quarter, then confirm your figures at the end of the year.

DOES IT APPLY TO ME?

It depends on your qualifying income – your total income from self-employment and property, before expenses.

Over £50,000 – you must use MTD from 6 April 2026 (already started)
Over £30,000 – you must use MTD from 6 April 2027
Over £20,000 – you must use MTD from 6 April 2028

WHAT YOU'LL NEED TO DO

Keep your income and expenses in MTD-compatible software, such as Xero
Send HMRC a quarterly update – by 7 August, 7 November, 7 February and 7 May
Submit a final declaration by 31 January after the end of the tax year

HOW WE CAN HELP

Check whether and when MTD applies to you
Set you up in Xero and connect your bank feed
Keep your records, or check the ones you keep
Send every quarterly update and your final declaration on time

Packages from £50 a month, including your tax return. Don't leave it until the last minute – the sooner you're set up, the easier the switch.