Making Tax Digital (MTD) is transforming how self-employed individuals and landlords manage their taxes. Starting from April 2026, anyone with income over £50,000 will be required to maintain digital records and submit quarterly updates of income and expenses. This new system replaces the traditional annual self-assessment with a more frequent, digital approach, ensuring greater accuracy and efficiency in tax reporting.
What is Making Tax Digital?
Making Tax Digital (MTD) is an HMRC initiative that modernises tax reporting. Instead of submitting one annual tax return, businesses and landlords now manage their tax digitally throughout the year.
Under MTD, you must:
Maintain Digital Records – Record all income and expenses using compatible software.
Submit Quarterly Updates – Send HMRC a summary of your income and expenses every three months.
Complete a Final Annual Declaration – Confirm your total tax position at the end of the year, replacing the traditional self-assessment tax return.
As a result, you keep your records up to date, reduce errors, and gain a clearer picture of your tax position throughout the year. Instead of rushing at year-end, you stay in control and plan ahead with confidence.hroughout the year, reducing errors and last-minute stress at tax time.
Quarterly Deadlines You Need to Know
Also, under MTD, quarterly updates must be submitted within one month of the quarter’s end. The deadlines are:
- 6 April – 5 July: Deadline 7 August
- 6 July – 5 October: Deadline 7 November
- 6 October – 5 January: Deadline 7 February
- 6 January – 5 April: Deadline 7 May
By keeping up with these deadlines, you can avoid penalties and stay on top of your tax obligations.
How Bell4Business Can Help
Adapting to Making Tax Digital can feel overwhelming, but Bell4Business makes it simple:
- Accounts Administration – We can set you up on QuickBooks or other compatible software, ensuring your records are digital and organised.
- Quarterly Updates – We prepare and submit your quarterly income and expense summaries so you can focus on running your business.
- Final Declaration – At the year-end, we complete your annual declaration, making sure your tax is filed accurately and on time.
With our support, MTD compliance becomes stress-free, giving you confidence that your taxes are handled correctly.
Furthermore, Making Tax Digital is here to stay, and preparing now is essential for self-employed individuals and landlords with incomes over £50,000. By maintaining digital records and submitting quarterly updates, you can simplify your tax obligations and avoid penalties.
Finally, Bell4Business is ready to guide you through the process, from setting up your software to filing quarterly updates and final declarations. Start your MTD journey today and take the stress out of tax reporting!
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