Making Tax Digital (MTD) is all about making tax simpler,
We’re here to help you understand what it means for you.
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Making Tax Digital (MTD) is a government initiative to make it easier for individuals and businesses to manage their taxes. Instead of filling out paper forms or doing everything manually, MTD means keeping digital records and using software to send updates to HMRC. The goal is to reduce errors, save time and make tax more straightforward.
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Some businesses are already following Making Tax Digital (MTD) rules for VAT, but more people will be brought in soon. MTD will affect sole traders and landlords with an income over £50,000 from April 2026. If you earn money from self-employment or property, you’ll need to keep digital records and send updates to HMRC using approved software. It’s a good idea to start getting familiar with the changes now, so you’re ready when the rules come in. If your income is between £30,000 and £50,000, you’ll need to follow the new rules from April 2027.
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The biggest change is that you’ll need to send updates to HMRC every three months instead of just once a year. That means no more last-minute scrambles to find lost receipts or catch up on a year’s worth of paperwork.
Manual bookkeeping or spreadsheets won’t cut it anymore. You’ll need to use HMRC-approved digital accounting software to keep your records and submit updates.
On the plus side, sending regular updates means you’ll have a much clearer view of your tax position throughout the year, so there should be fewer surprises when your tax bill arrives.
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To prepare for the changes, make sure your records are digital and ready for MTD. If you're unsure about what steps to take or which software to use, Middlebrook Accountancy can help you navigate the process. Read our FAQs below for more information, download our FREE MTD Guide or contact us to get started.
FAQs
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For Making Tax Digital (MTD), the £50,000 threshold typically refers to income, not net profit.
This means that if your total income from self-employment or property exceeds £50,000 (before expenses), you’ll be required to follow MTD rules starting in April 2026.
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Yes, you’ll need to use software approved by HMRC to keep your records and submit updates.
There are various options, but Middlebrook Accountancy is a Silver Champion Partner with Xero, and Nick has years of experience working with this software. We are also recognised partners with FreeAgent. If you aren’t sure which platform would suit you, give us a call and we’ll talk you through the options!
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No. The digitalisation of your records can be done remotely, so you don’t need to be local. However, if you’d like to visit and meet up for a coffee, Manningtree is beautiful!
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Failure to comply with MTD could result in fines from HMRC. It’s important to get your records in order before the deadline.
Avoid penalties and get the support you need—reach out to Middlebrook Accountancy to ensure you stay compliant. -
Item descSome individuals may be eligible for an exemption from Making Tax Digital (MTD) for Income Tax if they are considered digitally excluded. This means it is not reasonable for them to use compatible software to maintain and submit digital records. Valid reasons for exemption include circumstances where a person’s age, health condition, or disability prevents them from using digital tools; where they are unable to access the internet at their home or business and no suitable alternative location is available; or where their religious practices are incompatible with digital technology and they do not use digital devices for personal or business purposes.
For full details and eligibility criteria, please refer to HMRC’s official guidance. If you are unsure whether you qualify, Middlebrook Accountancy can help you assess your situation and guide you through the application process.
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Download our FREE MTD Guide to see what you can do to get ready for April 2026.
Download our FREE MTD Key Dates Guide so you don’t miss a deadline!