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What is Making Tax Digital?
Making Tax Digital is the government’s plan to move UK taxpayer’s records from spreadsheets and paper, to a fully digital system. It applies to VAT-registered businesses and will soon apply to Income Tax records for self-employed individuals and landlords with an income over £50,000.
Making Tax Digital key dates & deadlines
MTD for VAT has been applicable to VAT-registered businesses, regardless of turnover, since April 2022.
COMING SOON
April 2026
From April 2026, MTD for IT will apply to self-employed individuals and landlords with qualifying income over £50,000.
April 2027
From April 2027, MTD for IT will apply to self-employed individuals and landlords with qualifying income between £30,000 and £50,000.
April 2028
From April 2028, MTD for IT will apply to taxpayers with sole trade or property income of more than £20,000.
What does MTD mean for accountants and bookkeepers?
Accountants and bookkeepers will play a pivotal role in helping their clients understand the new requirements and select appropriate software.
“Many of our clients had heard nothing about MTD from HMRC and had no idea what it meant. So we talked a lot about it when we moved them over to QuickBooks.”
Lorraine Ellison,
Simply Additions Accountants
Simply Additions Accountants
As an accountant, you’ll need to help clients choose MTD-compliant software best suited for their needs, as well as:
Discover more about what MTD is and its impact on businesses.
Discover more information about MTD for VAT, current guidelines and how it could affect you.
Get the latest on MTD for Income Tax and what it means for your practice and clients.
This may sound like a lot, but with the right software, you’ll be able to track and access all of this data easily and in one place.
What does MTD mean for small business owners?
If a business is VAT-registered, HMRC will now automatically sign them up to MTD for VAT.
If you’re a self-employed business or landlord with annual business or property income above £50,000, you need to be registered for Making Tax Digital for Income Tax and using recognised software by April 2026. In April 2027, this income threshold lowers to £30,000 and once again to £20,000 in April 2028.
Designed to make it easier for businesses to file their tax returns, MTD requires you to:
Keep digital records using MTD-compatible software
Submit your tax returns to HMRC with digital links to your records
For Income Tax, submit quarterly financial updates of your business income
This may sound like a lot, but with the right software, you’ll be able to track and access all of this data easily and in one place.
Making Tax Digital–your next steps
What do I need to do for Income Tax in 2026?
MTD for Income Tax (MTD for IT) is coming. As well as the above, self-employed individuals and landlords with income over £50,000 will need to.
Maintain digital records, using MTD-compliant software
Submit quarterly updates of income and expenses to HMRC
Submit year-end adjustments and a final declaration
If your income is over £30,000, be MTD ready by 2027
If your income is over £20,000, be MTD ready by 2028
What do I need to do for VAT now?
Here’s what you need to do to comply with the Making Tax Digital for VAT rules:
Preparing for MTD with QuickBooks
Get ahead and start making tax records digitally with QuickBooks.
Our software is fully compliant with Making Tax Digital requirements, and can send data seamlessly to HMRC.
Maintain accurate, up-to-date records of your income and expenses, ready to submit to HMRC annually or quarterly.
See the bigger financial picture of your business, with cutting-edge cash flow reporting and analysis tools.
Support and guidance, including how to import your data, to ensure you’re fully compliant with Making Tax Digital.
At QuickBooks, we recognise the pressure businesses and accountants are under.
So as well as making sure our software is MTD-compliant and as user-friendly as possible, we’re helping firms and businesses beyond the onboarding process. All QuickBooks products will have functionality for MTD for IT.
Our range of support resources includes a digital marketing kit and onboarding guide for accountants, alongside a range of printable PDFs explaining everything from the benefits of cloud accounting to how MTD affects small businesses.
Getting started
Switch to MTD
Switching to MTD with QuickBooks is easy. If you’re VAT-registered, simply confirm you’re signed up for MTD for VAT. HMRC should have contacted you about it.
Connect to HMRC
Then, you can connect QuickBooks to HMRC and submit your tax return digitally.
Move financial records
If you want a head start for the upcoming MTD for Income Tax mandation date, moving your financial records to QuickBooks can help save you time and effort in the long term.
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Making Tax Digital FAQs
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