Making Tax Digital

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Making Tax Digital for Income Tax changes how affected sole traders and landlords keep records and provide information to HMRC.

KC Accountants helps you understand whether the rules apply, choose a workable record keeping process and manage the required submissions through compatible software.

Who needs to use it?

The current introduction timetable is based on qualifying income:

• Over £50,000 in 2024/25: from 6 April 2026
• Over £30,000 in 2025/26: from 6 April 2027
• Over £20,000 in 2026/27: from 6 April 2028

Qualifying income generally means combined gross income from self employment and property, before expenses. It is not your profit or your total income from every source.

We can review your circumstances, including whether an exemption may apply.

What changes?

Affected taxpayers need to maintain digital records and use compatible software to send quarterly updates. An annual tax return is still required.

Quarterly updates are not four separate annual tax returns. Making Tax Digital does not, by itself, introduce quarterly tax payments.

How we can help

• Reviewing whether and when you need to start
• Supporting registration where required
• Discussing compatible software
• Setting up a record keeping routine
• Helping organise income and expense records
• Reviewing and submitting quarterly updates
• Preparing the annual tax return
• Explaining the information we need and when

Your package will specify who maintains the records, which submissions are included and whether software is provided.

Getting started

We review your previous return, current income sources and bookkeeping arrangements. We then agree the software, responsibilities, service fee and timetable.

If you already fall within the rules but have not started, contact us so we can assess the position and explain the next steps.

What you may need

Your latest tax return, business and property income details, UTR, existing records and information about any accounting software you use.

Fees

MTD support involves work throughout the year. We quote according to the number of businesses or properties, transaction volume and bookkeeping support required.

Your quote will explain the total service fee, software costs and any available payment schedule.

Common questions

Does MTD replace my annual tax return?
No. Quarterly updates and the annual return perform different roles.

Can I keep using spreadsheets?
Possibly, if they form part of a compatible software arrangement and meet the relevant requirements. We can review your setup.

Does it apply to every limited company?
This page covers MTD for Income Tax for sole traders and landlords. VAT and company obligations are separate.

Prepare for your next step

Contact us to review your position and discuss a suitable service.