Making Tax Digital for accountants

Currently, all VAT-registered businesses in the UK need to use Making Tax Digital software to keep digital records and submit their VAT returns to HMRC. Making Tax Digital rules will eventually roll out across all types of taxes, so it’s a good idea to prepare your clients for Making Tax Digital now.

From April 2026, Making Tax Digital for Income Tax will come into effect which requires self-employed individuals and landlords in the UK, with a total qualifying income that exceeds £50,000 from these income sources for a tax year, to use digital tools to keep records of their income and expenses, and to submit quarterly updates to HMRC through compatible software. And from April 2027 MTD for IT will apply to self-employed individuals and landlords with a total qualifying income that exceeds £30,000 from these income sources for a tax year—and from 2028, the same group but with a qualifying income over £20,000. These dates may change if the rules change.

Learn more about MTD key dates here.

Under the new rules, eligible businesses will need to do the following:

• Use software for initial accounting, or transfer their accounts into electronic data.
• Submit this electronic data to HMRC in an HMRC-approved format.
• Make quarterly reports in addition to an annual Self Assessment tax return, beginning in April 2026.

In order to make sure your clients are ready for Making Tax Digital, you need a solution that’s HMRC-recognised for MTD, like QuickBooks accounting software. Whether your clients are small businesses or large corporations, our powerful all-in-one accounting software can help you save time managing their finances in line with HMRC standards.

If your current accounting software is unable to digitally submit your client’s VAT tax returns to HMRC, then it’s not MTD compliant. Your software will need to have digital links to HMRC in order to meet the requirements. It’s worth investing in an MTD-compatible accounting software like QuickBooks accounting software, so that your clients’ data will be tracked throughout the year. Looking to switch your practice or clients from another solution? Find out more here.

QuickBooks is not here to replace accountants or bookkeepers; instead we’re here to make your lives a lot easier. Our cloud-based accounting software allows you to have a real-time overview of your clients' finances from anywhere in the world, on any device. QuickBooks can help you save time and shift your focus from inputting data to advising your clients, helping their businesses grow and thrive.

April 2026. That’s when the government plans to roll out MTD for Income Tax for self-employed individuals and landlords with a total qualifying income that exceeds £50,000 from these income sources for a tax year.

MTD for IT will become mandatory for different income thresholds in stages. From April 2027, it will be required of self-employed individuals and landlords with a total qualifying income that exceeds £30,000.

The government has also signalled that this threshold will drop to £20,000 from April 2028.