Making Tax Digital
Making Tax Digital is live with the latest addition, Making Tax Digital for Income Tax, having launched on 6 April 2026.
Many people are wary of the changes involved. However, with the right support, Making Tax Digital (MTD) is straightforward and even beneficial for your business.
What is Making Tax Digital?
Making Tax Digital is HMRC’s move towards a fully digital tax system.
If you need to comply with MTD, you are required to:
- Keep digital records of your income and expenses.
- Use MTD-compatible software.
- Submit regular updates to HMRC throughout the year.
The extra reporting is in addition to your annual tax return. It’s designed to make tax reporting more accurate and efficient. With the right software in place, it’s surprisingly quick to submit details to HMRC.
Who Needs to Comply?
As of April 2026, Making Tax Digital applies to:
- Self-employed individuals with sales over £50,000.
- Landlords with rental income over £50,000.
If you’re in one of these categories, you should already be compliant or taking immediate steps to get set up.
Further stages of MTD for Income Tax are planned for:
- April 2027 – if your self-employed sales and/or rental income exceeds £30,000.
- April 2028 – if your self-employed sales and/or rental income exceeds £20,000.
What Actions are Involved?
Instead of filing one annual return, you’ll now need to:
- Maintain digital records all year round.
- Submit quarterly updates, with the first one due on 7 August 2026.
- Complete a final year-end declaration.
For many business owners and landlords, this feels like a big change. However it can be straightforward to implement once you have the right support in place.
Once you’re set up properly, Making Tax Digital can actually make life easier, offering:
- Clear, up-to-date view of your finances.
- Fewer errors compared to manual bookkeeping.
- Better cash flow planning.
- Less stress at year-end.
Many of our clients find that after the initial setup, they feel more in control of their business finances.
Supporting Local Businesses
The friendly accounting and bookkeeping experts at Hargreaves Owen work with businesses and individuals to make the transition to Making Tax Digital as smooth as possible. We can help you:
- Choose and set up the right software.
- Move from paper or spreadsheets to digital records.
- Manage and submit your quarterly updates.
- Stay fully compliant with HMRC requirements.
- Provide ongoing, friendly support whenever you need it.
While we’re based near Baldock, Letchworth and Hitchin, we work with clients across the UK. Our goal is to help you comply with MTD requirements as easily as possible, saving you time and stress.
Getting Started
Now that Making Tax Digital is live, it’s important to act quickly if you haven’t already prepared. Getting support early helps you to avoid penalties and stay compliant. ‘MTD doesn’t need to be complicated or stressful,’ says Trina Haggerty of Hargreaves Owen Accountants in Halls Green. ‘With the right guidance, it can become a seamless part of how you manage your business.’
Contact us to find out how we can help you to meet MTD requirements and avoid the panic. Let’s have an initial discussion without any obligation or jargon. If MTD applies to you, it’s time to act.