Category: Making Tax Digital
-
What will accountants charge for MTD?
If you want a comprehensive service where your accountant handles the entire Making Tax Digital (MTD) process for you, expect to pay between £60 and £100 per month. The End of the Once-a-Year Tax Bill If you are self-employed in the UK, you might be used to handing over a shoebox of receipts or a…
-
What happens if I miss an MTD deadline?
If you miss a Making Tax Digital (MTD) deadline, HMRC will give you a penalty point. Think of it like getting points on your driving licence. If you collect four points, you will be hit with a £200 fine. Every deadline you miss after that will cost you another £200. On top of this, if…
-
What to do before 5th April – self employed guide
To get ready for the new UK tax year, self-employed workers need to buy any needed business equipment or supplies now to lower this year’s tax bill, top up a pension to reduce taxable income, and—crucially for this year—set up digital accounting software if you earn over £50,000, as the new ‘Making Tax Digital’ rules…
-
How long do I need to keep receipts UK?
You must keep your receipts for at least 5 years after the 31 January submission deadline of the relevant tax year. Since tax returns are filed nearly a year after the tax year ends, this usually means keeping records for about 6 years in total from the date of the receipt. How the dates work…
-
Do I need to do MTD if I earn under 50k?
If your total income from self-employment and property is under £50,000, you do not need to switch to Making Tax Digital (MTD) in April 2026. You can continue using the normal Self Assessment tax return for now. However, the rules are changing in phases. If you earn more than £30,000, you will need to join…
-
Where can I find guidance on Making Tax Digital for income tax?
The most up-to-date and official rules are found on the GOV.UK website. You should look for the collection titled: “Making Tax Digital for Income Tax” Specifically, search for the page “Find out if and when you need to use Making Tax Digital for Income Tax.” This is the definitive source from HMRC that is updated…
-
MTD for rental income 2026
Starting 6 April 2026, if your total income from property and self-employment is over £50,000 a year, you must stop using the old annual tax return system. Instead, you must keep digital records and send updates to HMRC every three months using special software. What is Making Tax Digital (MTD)? Making Tax Digital is the…
-
What is MTD ITSA software
MTD ITSA software is a specific type of accounting or bookkeeping tool approved by HMRC that allows self-employed people and landlords in the UK to keep digital records and send tax updates to HMRC every three months. What is MTD ITSA? MTD stands for Making Tax Digital, and ITSA stands for Income Tax Self Assessment.…
-
Can I Use a Spreadsheet for Making Tax Digital (MTD)?
Yes, you can still use spreadsheets, BUT it is no longer as simple as just typing the numbers into the HMRC website. If you are self-employed, you might currently use a simple spreadsheet to track your income and expenses. Once a year, you probably just type the totals from that spreadsheet into the HMRC website…
-
How Do I Set Up Making Tax Digital? (MTD Guide)
Making Tax Digital (MTD) is a government programme that changes the way individuals and businesses keep their records and submit tax information to HMRC. If you’re unsure how to get started, this article explains everything in simple terms. 1. How Do I Register for Making Tax Digital? To register for Making Tax Digital, you need…