After years of planning, Making Tax Digital has finally happened, and we’ve just filed our first wave of quarterly reports on behalf of clients. Making Tax Digital does not apply to all our clients. We know MTD is a big change for our clients, and it may raise a lot of questions for you and how you manage your business finances and paperwork. We will be in touch to discuss how we can help you comply with MTD nearer your enrollment date. Please don’t worry or panic, but be prepared that change is coming.
Who Making Tax Digital Applies to
Making Tax digital only applies to:
✅Self-employed Sole Traders
✅Landlords, including those with jointly owned properties
Making Tax digital does not apply to:
❌ Partnerships
❌ Limited Companies
What is MTD?
💻 CREATE & KEEP DIGITAL RECORDS.
MTD is a legal obligation for sole traders and landlords to create and keep digital bookkeeping records, using software such as QuickBooks.
✅ SUBMIT QUARTERLY REPORTS TO HMRC.
Simple but accurate income and expense reports need to be submitted every 3 months to HMRC, via MTD compliant software.
📰DOES NOT REPLACE TAX RETURNS.
MTD is in addition to Self-Assessment. The Tax Return, the 31st January filing deadline, and when payments are due will not change.
When does it come in?
The total turnover from sole trade and / or rental income will determine when you will be part of MTD.
What will be required?
As well as the obligation to create and keep digital bookkeeping records, sole traders and landlords must submit quarterly reports to HMRC. The four reports are aligned with the tax year, and are the same for everyone.
There is a 5 week window after the month end to get bookkeeping records up to date and file the MTD report. This does mean keeping your invoices, expense receipts and bookkeeping records up-to-date will be vital to avoid HMRC penalties.
Whilst these reports need to be an accurate reflection of income and expenses, they don’t account for every element of accounting and tax, or other income streams (such as employment income, savings interest).
VAT registered sole-traders are required to file quarterly MTD reports in addition to the quarterly VAT returns.
How we can help?
We will be in touch nearer your enrollment date to let you know how we can keep you compliance, along discounted software, and an indication of our fees.
What HMRC have to say…
Please note, the information provided above is based on current guidance from HMRC and may be subject to change. Please contact us before making any big decisions or taking any action.
Page last updated 10 August 2026
