Making Tax Digital for Income Tax
MTD for Income Tax is here for sole traders and landlords over £50,000. Verwood bookkeeper handling set-up, quarterly updates and final declarations.
£31 a month – bookkeeping plus all 5 MTD returns
What’s included
- Checking whether and when MTD for Income Tax applies to you
- Choosing and setting up HMRC-recognised software
- Signing you up with HMRC and authorising me as your agent
- Keeping your digital records up to date through the year
- Submitting all four quarterly updates on time
- Preparing your end-of-year final declaration
MTD for Income Tax has started
Making Tax Digital for Income Tax is the biggest change to self assessment in decades. Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send HMRC a summary every quarter, followed by a final declaration after the tax year ends.
It isn’t going away, and it’s getting wider: the threshold drops to £30,000 in April 2027 and £20,000 in April 2028. Many more tradespeople, freelancers and landlords around Verwood, Ferndown and Ringwood will be brought in over the next two years.
The £31-a-month MTD plan
For £31 a month, with no VAT to add, I keep your bookkeeping up to date and file all five MTD returns for the year: the four quarterly updates and your final declaration. One predictable monthly payment, and no deadlines to worry about.
What I do for you
I make MTD simple. I’ll confirm when you need to join, set up software that suits the way you work, and connect it to HMRC. With Hubdoc or Dext you can snap your receipts on your phone as you go. Then each quarter I bring your records up to date and submit your update – so all you need to do is keep snapping receipts.
Quarterly deadlines
| Quarter (standard periods) | Update due by |
|---|---|
| 6 April to 5 July | 7 August |
| 6 July to 5 October | 7 November |
| 6 October to 5 January | 7 February |
| 6 January to 5 April | 7 May |
Your final declaration for the year is due by 31 January after the tax year ends, the same as the current self assessment deadline.
Not sure if it applies to you?
Read my plain-English Making Tax Digital guide or give me a call. It takes five minutes to work out where you stand.
MTD for Income Tax: frequently asked questions
Who has to use MTD for Income Tax?
Sole traders and landlords whose combined gross self-employment and property income is over £50,000 have had to use it since 6 April 2026. The threshold falls to £30,000 from 6 April 2027 and £20,000 from 6 April 2028.
Is it “income” or “profit” that counts?
It’s your gross income – turnover from self-employment plus gross rents – before expenses. A landlord with £35,000 of rent and a sole trader business with £20,000 of sales has £55,000 of qualifying income.
Will I be penalised if a quarterly update is late?
HMRC has said there will be no penalty points for late quarterly updates in the first year (2026–27) for people who joined in April 2026. Penalty points will apply after that, and the end-of-year return must still be filed on time.
MTD for Income Tax across East Dorset
MTD for Income Tax for businesses in: