Making Tax Digital (MTD)

MAKING TAX DIGITAL for self employed and landlords

HMRC’s Making Tax Digital (MTD) programme is transforming the way self-employed business owners and landlords manage their tax affairs. With Phase 2 now underway, MTD for Income Tax means quarterly digital reporting will soon be a reality for many individuals.

That’s where we come in. Our expert team is here to make the transition seamless, saving you time, stress, and unnecessary admin.

What MTD means for you

If you’re self-employed or a landlord, you’ll need to:

Submit 4 quarterly updates to HMRC, in addition to your final annual declaration
Keep digital accounting records through compatible software
Report detailed income and expense data each quarter

Failure to comply could mean penalties — but with the right setup, the process is simple.

Why Choose TC GROUP?

Specialist expertise in MTD and digital accounting
Tailored advice for your business circumstances
Peace of mind knowing your reporting is accurate and compliant

MTD may be a mandatory change, but it brings real benefits too: simpler record-keeping, greater efficiency, and more control over your finances.

FREE no-obligation consultation

For more information about Making Tax Digital, please contact us to arrange a free consultation.

How We Can Help

Industry leading software solutions

We’ll 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.

Ongoing support

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

MAKING TAX DIGITAL FAQS

Who’s affected by Making Tax Digital, and what’s the criteria?
Self-employed individuals and landlords with a qualifying income above £20,000 will be affected. The date at which you’re affected varies.

What’s qualifying income?
Qualifying income is the Total Turnover plus Gross Rent. This is turnover excluding VAT and before any expenses are considered.

When am I affected by MTD?
April 2026 for qualifying income above £50,000
April 2027 for qualifying income above £30,000
April 2028 for qualifying income above £20,000

What will be required?
Individuals affected by the Making Tax Digital requirements will need to submit 4 quarterly returns to HMRC as well as their usual end of year self-assessment tax return.

How do I submit the quarterly returns?
The quarterly returns must be submitted through a compatible accounting software, and all individual details of income and expenses for the return period must be reported on the returns.

What happens if I don’t submit quarterly to HMRC?
HMRC will issue fines and penalties to tax payers who don’t comply with the Making Tax Digital requirements. Self-assessment taxpayers, who are due to join MTD in April 2026, won’t be liable for the new penalty regime under MTD until 2027.

How can I ensure I’m compliant with MTD?
Keeping digital records on an approved accounting software will ensure you’re compliant with the requirements.

Keeping a separate bank account for your self-employment or rental income also makes things even easier. With automatic data feeds into your accounting software, you’ll:

Cut out manual data entry
Exclude personal transactions
Reduce admin and errors