Making Tax Digital
MTD for income tax has been coming for a long time. We have looked at multiple options for complying with the new rules and believe that the use of Xero Simple will be the most user friendly and cost-effective way to tackle compliance.
We are aware that not everyone will want to give up their spreadsheets, so we have our very own templates for you to use that link to our filing software; keeping you MTD compliant. Bear in mind this will not be a permanent solution for full MTD compliance. We recommend early adoption of accounting software to stay ahead of future legislation.
Making Tax Digital FAQ's
WHAT IS MAKING TAX DIGITAL?
Making Tax Digital is HMRC’s new way for sole traders and landlords to report their income. You will need to submit four quarterly returns and a final annual return.
IS MTD FOR INCOME TAX MANDATORY?
Right now, no, but it will be mandatory for sole traders and landlords with gross income above £50,000 from the 6th April 2026
WHAT MONTHS DO THE QUARTERLY RETURNS COVER?
The four quarterly returns will cover April-June, July-September, October-December and January-March.
WHEN IS THE DEALINE FOR FILING QUARTERLY RETURNS?
The deadlines will be the 7th of August, November, February and May.
WHAT SOFTWARE DO I NEED?
As a Xero partner, we recommend using Xero Simple. You can utilise our spreadsheet template if this option is not for you.
SHOULD I KEEP DIGITAL RECORDS NOW?
It is always a good idea to start early. We recommend moving to MTD compliant software as early as possible. This way you can get used to it before the new rules start.