Get compliant, stress-free, and ahead of the deadline
Making Tax Digital for Income Tax (MTD IT) is now live, and HMRC's quarterly reporting requirements are already reshaping how sole traders and landlords manage their tax affairs. If you're feeling uncertain about what's required, when it applies to you, or how to actually make it work in practice — that's exactly where we come in.
We handle the entire transition for you: registration, software setup, quarterly submissions, and your year-end Final Declaration — so you can stay focused on running your business, not wrestling with HMRC's systems.
What is Making Tax Digital for Income Tax?
MTD for Income Tax replaces the traditional annual Self Assessment tax return with a new digital system. Instead of filing once a year, affected sole traders and landlords must now:
- Keep digital records of all business and property income and expenses
- Submit a quarterly update to HMRC every three months, using MTD-compatible software
- Submit a Final Declaration at year-end, which replaces the old Self Assessment return and calculates your final tax liability
Paper records and standalone spreadsheets (unless linked to approved bridging software) are no longer sufficient to meet HMRC's requirements.
Do you need to comply, and when?
HMRC is rolling out MTD for Income Tax in phases, based on your qualifying income — your combined gross turnover from self-employment and/or property, before expenses or allowances are deducted.
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Qualifying income (in the relevant prior tax year)
- Over £50,000 6 April 2026 (already in effect)
- Over £30,000 6 April 2027
- Over £20,000 6 April 2028
A few important points worth knowing:
- Qualifying income includes gross self-employment turnover and gross rental income combined — not just one or the other.
- It does not include employment income, dividends, savings interest, pension income, or capital gains.
- HMRC assesses your threshold using your most recently filed Self Assessment return, so your obligation date is confirmed well in advance.
Not sure where you stand? We'll review your last filed return and tell you exactly when you need to act.
How we help
1. MTD readiness assessment
We review your income sources, current record-keeping, and existing software to confirm your mandatory start date and identify any gaps before they become a problem.
2. Software setup and migration
We'll set you up on HMRC-recognised software suited to your business — whether that's a full cloud accounting package or bridging software linked to your existing spreadsheets — and migrate your records across cleanly.
3. Digital record-keeping support
We help you build a simple, sustainable routine for capturing income and expenses digitally, so quarterly reporting becomes second nature rather than a scramble every three months.
4. Quarterly submissions, handled for you
We prepare and submit your quarterly updates to HMRC on your behalf, checking your figures each time so nothing is missed and nothing is overstated.
5. Final Declaration and year-end tax calculation
At year-end, we pull together all your income sources — including anything outside MTD, like PAYE earnings or dividends — to prepare your Final Declaration and confirm your tax liability.
6. Ongoing advice
Tax rules move quickly. We keep you informed of anything that affects your business — new thresholds, exemptions, or penalty rule changes — so you're never caught off guard.
Why work with us on MTD
- We do the digital heavy lifting. You don't need to become a software expert — we manage the technical side so you don't have to.
- Fixed, transparent pricing. No surprise bills for quarterly work — you'll know your costs upfront.
- Local, accountable, and easy to reach. You'll deal with the same people every quarter, not a call centre.
- We look at the full picture. Quarterly compliance is only part of the job — we also flag tax planning opportunities as we go, rather than waiting until year-end.
Frequently asked questions
What happens if I miss a quarterly deadline?
HMRC has introduced a new points-based penalty system for MTD for Income Tax, replacing the old flat late-filing fine. Points accumulate for missed deadlines and can lead to financial penalties once a threshold is reached. We build in reminders and buffer time to make sure this never becomes an issue for you.
I'm just under the threshold right now — do I need to do anything?
Not yet, but it's worth preparing early. Thresholds step down over the next couple of years, and voluntary early sign-up can make the eventual transition much smoother. We're happy to advise on timing.
Can I still use spreadsheets?
Only if they're linked to HMRC-recognised bridging software. A standalone spreadsheet, on its own, won't satisfy the digital record-keeping requirement. We can advise whether your current setup qualifies or needs adjusting.
What counts towards my qualifying income threshold?
Your gross turnover from self-employment plus gross rental income, combined, before any expenses or allowances are deducted. It doesn't include PAYE income, dividends, savings interest, or pensions.
I have income from both a sole trade and a rental property — do both count?
Yes. HMRC adds your gross self-employment turnover and gross property income together when assessing whether you've crossed a threshold.
Ready to get compliant, without the stress?
Whether your MTD obligations start now or in a future phase, getting set up properly — and early — makes all the difference. Let us take care of the detail, so you don't have to.
Book your free MTD consultation or call us on 01332 202660 / email adrian@adrianmooy.com
This page provides general guidance only and does not constitute tax advice. Rules and thresholds are subject to change by HMRC; please contact us directly to discuss how Making Tax Digital applies to your specific circumstances.
01332 202660
61 Friar Gate Derby DE1 1DJ
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Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
