What’s changing under MTD for Income Tax?
1 - Digital Record Keeping Income and expenses records must be kept digitally, in MTD-compliant software.2 - Quarterly updates Instead of a single annual return, you’ll need to send four quarterly updates on income and expenditure.
3 - Final declaration Once you’ve submitted four quarterly updates, you’ll need to finalise your income with a final declaration.
Why MTD Compliance Matters
Making Tax Digital (MTD) is HMRC’s initiative to digitize tax reporting, ensuring businesses keep digital records and submit tax returns using approved accounting software. Currently, MTD applies to VAT-registered businesses, but it’s expanding to Income Tax Self Assessment (ITSA) from April 2026 for self-employed individuals and landlords earning over £50,000. Failing to comply can lead to:- Penalties from HMRC
- Unnecessary stress managing digital records
- Missed opportunities for tax savings and financial planning
How MRJ & Co. Can Help...
MRJ & Co. MTD expertise can provide:- Seamless Compliance – Ensuring your financial records meet MTD regulations and helping you avoid penalties
- MTD-Approved Software Setup
- Time & Cost Savings – Reducing tax errors, maximising deductions, and improving financial efficiency
- Ongoing Support – Keeping you updated on future tax law changes and MTD updates.
