Making Tax Digital

Making Tax Digital (MTD) is a UK government initiative by HM Revenue & Customs (HMRC) designed to make the tax system more efficient, accurate, and easier for taxpayers.

HMRC are introducing MTD to move tax record-keeping and reporting online, reducing errors and simplifying the process for individuals and businesses.

Who it applies to:

  • VAT-registered businesses must keep digital records and submit VAT returns using HMRC-approved software.

  • Income Tax Self Assessment (ITSA) is being introduced from April 2026 for self-employed individuals and landlords. Check out our handy tool below to see when you will be required to adopt MTD.

How it works:

  • Businesses and individuals use compatible accounting software (like QuickBooks, Xero, or Sage) to record transactions digitally.

  • The software links directly to HMRC’s systems to submit tax returns.

    Additional benefits:

  • Reduces paperwork and manual errors.

  • Provides more up-to-date financial information.

  • Makes compliance and record-keeping easier.

At DXE we are committed to easing all our clients into the new initiative with a hassle free transition and an added focus on providing businesses with greater oversight rather than just compliance.

How our expert team of Chartered Accountants can assist with the transition

Advising on the most suitable HMRC-compliant software
We assess your business needs and recommend the software that best supports efficient, compliant digital record-keeping.

Set-up and full migration to your chosen software
Our team manages the entire onboarding process, ensuring a smooth transition with minimal disruption to your operations.

Monthly bookkeeping to keep your records accurate and up to date
We maintain your books on a regular basis so you always have clear, real-time financial information at your fingertips.

Preparation and submission of quarterly returns
We handle every quarterly filing on your behalf—saving you time, ensuring accuracy, and helping you avoid penalties for late submission.

Preparation and submission of your final self-assessment
Our accountants prepare and file your annual return, ensuring complete compliance while maximising any tax reliefs you are entitled to claim.

Ultimately, we can handle all aspects of MTD allowing you to stay focused on running and growing your business.

For Income Tax / Self Assessment (MTD for ITSA)

  • From 6 April 2026, self-employed individuals and landlords with annual income over £50,000 must start using MTD for Income Tax: keep digital records and file quarterly updates.

  • The deadlines for quarterly updates (standard periods) are:

    • 6 April to 5 July → due by 7 August

    • 6 July to 5 October → due by 7 November

    • 6 October to 5 January → due by 7 February

    • 6 January to 5 April → due by 7 May

  • The final declaration (replacing the annual Self Assessment return) will still be by 31 January following the end of the tax year.

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Select your income bracket from the options below to see when MTD will impact you.

  • If your income was over £50,000 based on the 2024/25 tax year, you will need to start using MTD from April 2026.

  • Based on your income for the 2025/26 tax year, MTD will come into force for you from April 2027.

  • MTD will need to be adapted from April 2028 based on your income during the 2026/27 tax year.

  • Taxpayers with qualifying income of £20,000 or less are not currently required to join MTD for Income Tax.