Making Tax Digital

Making Tax Digital for Income Tax — sorted, not stressful

MTD for Income Tax is now mandatory for sole traders and landlords earning over £50,000, and the threshold drops to £30,000 from April 2027. We get Wirral sole traders and landlords compliant early, with the right software set up correctly and every quarterly deadline handled for you.

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Certified Xero Partner

Xero is fully HMRC-recognised MTD software. As a certified Xero partner, we set up and manage your digital records and quarterly submissions correctly from day one.

Are You Affected?

MTD for Income Tax is rolling out in stages

Whether you need to act now or in a couple of years depends on your total turnover from self-employment and property, combined — not your profit.

Mandatory now
£50,000+

From April 2026

Sole traders and landlords with qualifying income over £50,000 (based on your 2024/25 tax return) must already be using MTD for Income Tax.

Coming April 2027
£30,000+

Next phase

The threshold drops to £30,000, bringing many more sole traders and landlords into scope. Worth preparing for now rather than in year one.

Expected April 2028
£20,000+

Future phase

A further drop to £20,000 is anticipated, though HMRC hasn't confirmed a date yet. We'll keep clients updated as this is finalised.

Our MTD for Income Tax support includes:

Sole traders

Self-employment turnover over the current threshold means quarterly digital updates instead of one annual return.

Landlords

Rental income counts too, even from a single property — it's your total qualifying income that determines when you're in scope.

Both self-employed and a landlord

Your self-employment and property income are added together to check the threshold, which catches some people out.

How It Works

Getting MTD-ready, from the first call

1

Free MTD check

We confirm whether you're affected now, from April 2027, or not yet, based on your actual income.

2

Software setup

We get you set up on Xero, migrating any existing records so your digital trail starts clean.

3

Quarterly updates handled

We prepare and submit every quarterly update on schedule — you're never chasing a deadline.

4

Final declaration

We complete your end-of-year final declaration, replacing the self-assessment return you're used to.

FAQ

Making Tax Digital for Income Tax — common questions

Do I need to do anything about Making Tax Digital right now?+
If your total self-employment and/or property income was over £50,000 on your 2024/25 tax return, you should already be using Making Tax Digital for Income Tax as of April 2026. If you're under that threshold, you don't need to act yet, but the threshold drops to £30,000 from April 2027, so it's worth getting ready in advance.
What counts as qualifying income for the MTD threshold?+
Qualifying income is your total turnover from self-employment and property combined, before expenses — not your profit. If you're both a sole trader and a landlord, both income sources are added together to check whether you're over the threshold.
What software do I need for Making Tax Digital?+
You need HMRC-recognised MTD software to keep digital records and submit updates. We set clients up on Xero, which is fully MTD-compatible, and handle the setup and migration for you.
I'm a landlord with one rental property — does this affect me?+
It depends on your total qualifying income, not the number of properties. If your rental income (combined with any self-employment income) is over the relevant threshold, you're in scope, even with just one property.
What happens if I miss a quarterly submission?+
Late submissions will be penalised under a new points-based system, though HMRC has confirmed no late submission penalties will apply for the first year (2026/27) while people adjust. We manage the deadlines for our clients so this isn't something to worry about.
Does Making Tax Digital affect limited companies?+
Not currently — MTD for Income Tax applies to sole traders and landlords. Limited companies aren't in scope, though they remain subject to Making Tax Digital for VAT if registered.
Related Services

Often paired with MTD support

Not sure if MTD applies to you yet?

Request a free callback — we'll check your numbers and tell you exactly where you stand.

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