North Devon Accounts will guide you through Making Tax Digital and keep you fully compliant.
Important update about Making Tax Digital
HMRC is changing the way many self employed people and landlords report their income tax. This is called Making Tax Digital for Income Tax, often shortened to MTD for ITSA.
Instead of completing one Self Assessment tax return each year, you will need to keep digital records and send updates to HMRC every three months, followed by a final declaration at the end of the tax year.
This is a significant shift in how income tax is reported. With the right support and systems in place, it can feel structured and manageable.
Who will it affect?
It depends on your total income from self employment and property combined, before expenses are deducted.
Total income from self employment and property | When MTD starts
Over £50,000 per year – From April 2026
Over £30,000 per year – From April 2027
Under £30,000 per year – Date to be confirmed
Examples
If you run a business earning £35,000 and also receive £20,000 from rental income, your total income is £55,000. You will move to MTD from April 2026.
If your combined income is £32,000, you will move to MTD from April 2027.
What will change?
You will need to:
• Keep digital records using compatible software such as QuickBooks or Xero
• Send quarterly updates to HMRC showing income and expenses
• Submit a final declaration at the end of the tax year instead of the current Self Assessment return
This means more regular reporting throughout the year, with fewer surprises at year end.
How North Devon Accounts can help
We support sole traders, landlords and limited company directors across North Devon with practical, straightforward advice.
We can help you by:
• Recommending suitable software for your business
• Setting up digital record keeping systems
• Keeping your bookkeeping up to date
• Preparing and submitting your quarterly updates
• Completing your final declaration
Our role is to make sure everything runs smoothly and that you feel confident about what is required.
If you would like to confirm when MTD will apply to you, or you want to start preparing now, contact us today for your free 30-minute consultation.
We will review your income position, explain what happens next, and put a clear plan in place so you are ready for the changes ahead.
