Making Tax Digital (MTD)

HM Revenue & Customs are implementing a new system around digital record keeping & reporting that will apply to millions of self employed business owners around the UK. The plan is to make the UK system one of the most digitally advanced in the world so you need to be aware of what is changing and your obligations.

Does MTD apply to me?

If you’re a sole trader, CIS subcontractor, landlord or a mixture of them and have a combined income of over £50,000 in the 2024/25 tax year, you will be legally obliged to register for Making Tax Digital (MTD) from April 2026. From April 2027, this will be reduced to £30,000 which will then effect millions more in the UK. The plan is to eventually reduce this threshold to £20,000.

What will my obligations be?

In addition to the current self assessment tax return that you file, you will also need to keep accurate digital records of all income and expenditure which will need to be submitted to HM Revenue & Customs every quarter from April 2026 onwards (April to June, July to September, October to December and January to March). The same quarters will apply to all individuals in the UK.

Many of you will have lots of questions about Making Tax Digital from how the tax refund will look, what the accountancy fees will be, software cost and so on.

For our clients, we will ensure they are registered for Making Tax digital and we offer a complete service to take care of all your requirements. The benefits of using Holland Accountancy:

  1. We manage the whole process for you

  2. Ensure the MTD registration is done correctly

  3. We have the digital resources and information you’ll need

  4. Keep track of your tax affairs

  5. Send you reminders for each quarter to avoid the new HMRC penalties

  6. Go over tax calculations/tax refund amounts

  7. Offer flexible payment terms to ensure our fees stay competitive

Once registered you will be legally obliged to continue to report in this manner unless your qualifying income falls below the threshold for three consecutive years.

We are putting everything into place now to ensure we stay one step ahead of the game and competition to make sure we offer a fully managed MTD service that simply, can’t be beaten. This will save you time to focus on your business, save you money and keep you compliant with HMRC.