Why do I need an accountant for MTD for Income Tax?

Making Tax Digital (MTD) for Income Tax represents a significant shift in how landlords and self-employed individuals report their income. Instead of one tax return a year, HMRC now requires digital record‑keeping, quarterly updates, and a final declaration submitted through approved software. For many, this means a change in habits, administration, and tech.

 

What MTD actually requires from landlords and the self‑employed

Under MTD, HMRC expects you to:

• Keep digital records of all income and expenses: paper receipts and spreadsheets alone won’t meet the rules.
• Submit quarterly updates to HMRC showing income and expenses for that period.
• Use MTD‑compatible software to store records and send updates.
• Submit a final declaration after the tax year, confirming your total taxable income.

This applies to landlords and sole traders once their qualifying income passes the threshold (starting at £50,000 from April 2026, then £30,000 from April 2027, and £20,000 from April 2028).

 

What makes MTD more complex in practice

For many landlords and self‑employed people, the challenge isn’t the tax itself, it’s the admin:

• The quarterly deadlines mean you can’t leave everything until January anymore.
• Digital record‑keeping requires consistent, accurate input throughout the year.
• Software choices can be confusing, and the wrong setup can cause errors or missed submissions.
• Mixed income streams (e.g., rental + self‑employment) must be recorded and reported separately.

This is where accountants become essential. TC Group can help bridge that gap, not just by filing things for you on approved accounting software, but by making sure the information HMRC receives is accurate, compliant, and stress‑free.

 

How can TC Group help?

Industry-leading software solutions

At TC Group, we can recommend the right MTD-compatible accounting software for your business needs and help you get it up and running.

Training & Support

We’ll show you how to use the software effectively, so you can manage records with confidence.

Keeping your records compliant

MTD requires digital records that match HMRC’s categories. TC Group ensures:

• Income is recorded correctly
• Allowable expenses are claimed properly
• Property and self‑employment income are kept separate
• Overseas and UK property businesses are reported individually if needed

This avoids errors that could trigger penalties.

Reducing your workload

Instead of juggling receipts, software, and deadlines, you can hand off the admin and focus on running your business or managing your properties. Avoiding penalties

MTD introduces more frequent reporting, which means more opportunities for mistakes. Accountants help you stay compliant and avoid unnecessary fines.

Ongoing Support

From troubleshooting to advice on best practice, we’ll be here every step of the way.

 

Reach Out To Us Today For Support

Start preparing and managing your income digitally with confidence as soon as you can.

For support in planning effectively and staying ahead of upcoming changes, get in touch with your TC Group local office.

MTD for Income Tax