Making Tax Digital (MTD) is a major shift to mandatory digital tax reporting
Making Tax Digital requires self-employed individuals and landlords to keep digital records, use MTD-compliant software, and send quarterly updates instead of an annual return. It applies first to those with income over £50k from April 2026, then £30k from April 2027.
This means you’ll need to:
- Keep digital records of income and expenses
- Use approved software
- Send updates to HMRC every quarter
You must decide whether to manage MTD yourself or use an accountant
To help you decide which route is best, think about:
- How simple or complex your finances are
- How confident you feel using digital accounting tools
- How much time you can spare every 3 months
- How comfortable you are with HMRC rules and deadlines
Doing it yourself can save money, however using us saves time, ensures accuracy, and reduces the risk of penalties. To help you decide which route is best, think about:
Preparing early makes the transition smoother and avoids risk
Even if MTD doesn’t apply to you yet, getting ready now means less pressure later.
Early preparation such as getting a digital bank account, choosing software, and organising records, reduces pressure, avoids penalties, and helps businesses get used to digital processes ahead of time.
We are here to help
We appreciate the introduction of MTD might be daunting but we are on hand to support you. In the run up to its introduction we will keep you informed of any changes and developments. In the meantime, if you have any queries or questions please speak to your usual Streets contact, email mtd@streets.uk or contact your local office.
