

Professional
MTD (MAKING TAX DIGITAL)


MAKING TAX DIGITAL
What MTD Means for You and When It Starts
Making Tax Digital is the most significant overhaul of UK personal taxation in a generation, and for many sole traders and landlords across the country, it's already here. As your specialist Making Tax Digital accountant UK, Pro Tax Accountant helps you understand exactly when MTD applies to you and what changes you actually need to make. From 6 April 2026, sole traders and landlords with qualifying gross income above £50,000 from self-employment and/or property are required to keep digital records and submit quarterly updates to HMRC using compatible software. The threshold then drops to £30,000 from April 2027 and £20,000 from April 2028, eventually pulling around three million people into the new system.
Each quarterly update covers your business and property income and expenses, with a final declaration replacing the traditional self-assessment tax return at the end of the year. The first quarterly submission for the 2026/27 tax year covers the period from 6 April to 5 July 2026 and must be filed by 7 August 2026. There are exemptions for those who are digitally excluded, but they have to be applied for and approved by HMRC. We help you work out whether you're in scope, what your qualifying income actually is for MTD purposes, and the practical steps you need to take before your start date arrives. No scare tactics, no jargon — just clear answers from people who deal with HMRC's MTD framework day in, day out.
Software, Setup and a Team That Knows the System Inside Out
Switching from one annual tax return to four quarterly submissions plus a final declaration sounds daunting, and frankly, for many self-employed people, it is. That's where our team genuinely earns its keep. With more than 18 years of senior tax accounting experience guiding the firm, and a group of practitioners who have been working with HMRC's MTD systems since the VAT pilot back in 2019, Pro Tax Accountant has the practical know-how to make this transition almost invisible to you. We're certified partners with the leading HMRC-recognised MTD software providers, including Xero, QuickBooks, FreeAgent and Sage, so we can match you with the platform that genuinely suits your business size, sector and budget rather than just selling you whatever we happen to use ourselves.
For landlords with multiple properties, sole traders with side businesses, and contractors juggling several income streams, this software fit matters enormously. We handle the initial setup, migrate your existing records over carefully, train you on the day-to-day bookkeeping if you'd like to keep that side in-house, or take the whole job off your hands as your bookkeeper and MTD agent. Our practitioners attend regular HMRC webinars and ICAEW updates to make sure we're always working with the latest rules, the latest software releases and the latest exemption guidance. When something genuinely changes — like the move to fully digital final declarations or the recent reduction of the mandation threshold to £20,000 from 2028 — we let our clients know in plain English well before any deadline.
A Smoother Quarterly Routine and Real Visibility for Your Business
The clients we look after for Making Tax Digital tell us the same thing time and again: they expected the change to be a headache, and instead, it has actually given them a much clearer view of how their business is doing throughout the year. That isn't an accident. We design each MTD setup so that quarterly numbers are produced quickly and accurately, giving you real-time visibility into income, expenses and emerging tax liabilities rather than the once-a-year shock that used to come with the January self-assessment deadline. Whether you're a buy-to-let landlord with a single rental in Liverpool, a freelance designer in Bristol, or a small construction firm in Glasgow, our online service means you can work with us entirely remotely; we handle quarterly submissions, year-end adjustments and HMRC correspondence through secure cloud portals. Our fees are fixed and published upfront, so there are no surprises when the work is done, and our response times during peak tax periods are something our clients consistently praise in their reviews.
We also keep you informed of any rule changes, software updates or HMRC guidance shifts that affect your situation, often spotting issues before they become problems. If you've already received an HMRC letter telling you that MTD applies from April 2026, or if you simply want to get ahead of the curve before the lower thresholds kick in, drop us a line for a free initial consultation. We'll tell you honestly whether you need our help, when you need to start and roughly what it should cost — that straightforward approach is exactly why so many UK sole traders and landlords now consider us friends rather than just their accountants.
FAQs
1. What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's initiative requiring affected taxpayers to keep digital records and submit quarterly updates to HMRC using compatible software, replacing the traditional annual paper or online tax return.
2. When does Making Tax Digital start for me?
From 6 April 2026 for sole traders and landlords with qualifying income over £50,000, from April 2027 for those over £30,000, and from April 2028 for those over £20,000. We'll confirm your exact start date.
3. What counts as qualifying income for MTD?
It's your gross income from self-employment and/or property letting before expenses, combined. We help you work out whether your income crosses the relevant threshold.
4. What do I have to do under MTD?
You'll keep digital records, send HMRC a quarterly update of your income and expenses using compatible software, and submit a final declaration at the year-end that replaces your old self-assessment return.
5. When is my first quarterly submission due?
For those starting in April 2026, the first quarter covers 6 April to 5 July 2026 and must be filed by 7 August 2026. We make sure every deadline is met.
6. Which software do I need? Y
ou must use HMRC-recognised MTD software such as Xero, QuickBooks, FreeAgent or Sage. We match you with the right platform for your business and set it up for you.
7. Does MTD apply to limited companies?
MTD for Income Tax applies to sole traders and landlords, not limited companies. However, VAT-registered businesses, including companies, already file under MTD for VAT. We advise on both.
8. Can I be exempt from Making Tax Digital?
Exemptions exist for those who are digitally excluded, for example due to age, disability or lack of internet access, but they must be applied for and approved by HMRC. We can help you apply.
9. What if I'm below the threshold?
You're not yet mandated, but you can sign up voluntarily if it suits you. We'll advise whether early adoption makes sense for your circumstances.
10. Can I get this service online?
Yes. Our Making Tax Digital service is fully available online across the UK, as well as from our London office, with secure cloud portals for your records and submissions.


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