Making Tax Digital, made simple
Stay compliant with HMRC, without the quarterly headache.
Making Tax Digital (MTD) changes how sole traders, landlords and VAT-registered businesses keep records and report to HMRC. At Charles Accountancy we set you up on the right software, keep your records in shape and file every submission on time, so you can get on with running your business.
What is Making Tax Digital?
Making Tax Digital is HMRC's programme to move tax reporting online. Instead of a single annual tax return built from paper records, you keep digital records in HMRC-recognised software and send summaries to HMRC through that software.
MTD for Income Tax is now rolling out to sole traders and landlords, based on their combined self-employment and property income:
Who must join MTD for Income Tax
6 April 2026
Qualifying income over £50,000
6 April 2027
Qualifying income over £30,000
6 April 2028
Qualifying income over £20,000
Your start date is based on the qualifying income on an earlier tax return, not what you expect to earn this year. Partnerships will be brought in later.
What MTD means for you
Under MTD for Income Tax you report to HMRC five times a year instead of once: four quarterly updates plus a final tax return.
Quarter (standard tax year)
Q1 = 6 April – 5 July = due 7 August
Q2 = 6 July – 5 October = due 7 November
Q3 = 6 October – 5 January = due 7 February
Q4 = 6 January – 5 April = due 7 May
The final tax return is due by 31 January after the tax year ends, and your tax is still payable on the same dates as now. Quarterly updates are a summary of income and expenses – they don't create a tax bill on their own.
Penalties are changing too. HMRC is replacing the old late-filing fines with a points-based system. HMRC is not issuing penalty points for late quarterly updates in the first year (2026/27), but late tax returns and late payments still count – and from 2027/28 every missed quarterly deadline earns a point. Build up enough points and you'll face a financial penalty.
How we help
MTD readiness check – we confirm whether and when MTD applies to you, and whether any exemption is available.
HMRC sign-up and authorisation – we register you for MTD for Income Tax and set up our agent access, so nothing falls through the gaps.
Software setup – we get you onto HMRC-recognised software such as Xero, with bank feeds, the right categories and simple receipt capture on your phone.
Quarterly updates done for you – we review your records each quarter, tidy up anything that's missing and submit your update before the deadline.
Final tax return – we make the year-end adjustments, claim every allowance you're entitled to and file your return.
MTD for VAT – VAT returns prepared, checked and filed digitally every quarter.
Bookkeeping support – prefer not to do it yourself? We can keep your books up to date for you.
Help for landlords – property income reported correctly alongside, or separately from, your trading income.
Why choose Charles Accountancy?
MTD is more than compliance – it's an opportunity. For the first time, you'll have up-to-date figures every quarter instead of once a year. We help you use those numbers to make better decisions, not just to keep HMRC happy.
ACCA-qualified – your work is overseen by Tim Charles ACCA and backed by ACCA's professional standards.
We know the trades – we work with landscapers, cleaners, builders, decorators and carpenters, so we understand CIS, materials, vans and seasonal cash flow.
Fractional CFO insight – each quarter we can flag what's driving your profit, where your margins are slipping and what to expect on your tax bill.
No surprises – a clear fixed monthly fee, agreed upfront.
Deadlines handled – we track every submission date and chase you for what we need, in good time.
How it works
Free MTD review – a short call to look at your income, your current records and when MTD applies to you.
Clear proposal – we recommend the right software and service level, with a fixed fee.
Setup – we sign you up with HMRC, set up your software and connect your bank feeds.
Every quarter – you keep your receipts and invoices in the app; we review, correct and submit your update.
Year end – we finalise your figures, file your tax return and tell you what to pay and when.
Frequently asked questions
Do I pay tax four times a year under MTD? No. Quarterly updates are summaries of your income and expenses. Your tax is still paid on the usual Self Assessment dates.
I run a limited company – does MTD for Income Tax apply to me? Not to the company itself, but it can apply to you personally if you also have self-employment or rental income over the threshold. MTD for VAT applies if the company is VAT-registered.
I'm a landlord with no other business. Am I affected? Yes, if your qualifying property income (plus any self-employment income) is over the threshold.
Can I still use spreadsheets? Yes, but only with HMRC-recognised bridging software to link them to HMRC. Most clients find proper accounting software saves time.
I missed the first quarterly deadline. What should I do? Don't panic. There are no penalty points for late quarterly updates in 2026/27, but the update is still required. Get in touch and we'll bring your records up to date.
Can I join MTD before I have to? Yes. Joining early lets you get used to the process before penalty points apply.
Get MTD-ready today
Whether your first deadline has already passed or you're joining in 2027 or 2028, the sooner your records are digital, the easier it gets. Book your free MTD review and we'll tell you exactly where you stand.