GET READY FOR MAKING TAX DIGITAL
Helping you prepare for the future of tax reporting
Making Tax Digital is HMRC’s move towards a more modern, digital tax system.
It means that many businesses, sole traders and landlords must keep digital records and use compatible software to send tax information to HMRC.
For VAT-registered businesses, Making Tax Digital for VAT already applies. This means VAT records should be kept digitally and VAT returns should be submitted through compatible software.
For Income Tax, Making Tax Digital is being introduced in stages for sole traders and landlords based on qualifying income.
The current thresholds are:
From 6 April 2026, MTD for Income Tax applies if your qualifying income from self-employment and property is over £50,000.
From 6 April 2027, it applies if your qualifying income is over £30,000.
From 6 April 2028, it applies if your qualifying income is over £20,000.
At Rassam Accounting Services, we help you understand whether MTD applies to you, what records you need to keep, what software may be required and how to stay organised before deadlines become a problem.
Digital. Organised. Compliant.
£50K+
From
April 2026
£30K+
From
April 2027
£20K+
From
April 2028
VAT
Digital
Returns
WHO MTD APPLIES TO
VAT-Registered Businesses
All VAT-registered businesses should now be using Making Tax Digital for VAT. This means keeping VAT records digitally and submitting VAT returns through compatible software.
Sole Traders
Sole traders may need to use Making Tax Digital for Income Tax if their qualifying self-employment income is above the relevant threshold.
Landlords
Landlords may need to use Making Tax Digital for Income Tax if their qualifying property income or combined self-employment and property income exceeds the relevant threshold.
Businesses Preparing Early
Even if MTD does not apply to you yet, preparing early can make your records clearer, reduce last-minute stress and help you move to digital systems gradually.
WHAT MTD REQUIRES
What you may need to do under Making Tax Digital
Making Tax Digital is not just about submitting a tax return online. It changes the way records are kept and how tax information is sent to HMRC.
If MTD applies to you, you may need to keep digital records, use compatible software and submit information to HMRC throughout the year.
Rassam Accounting Services helps make this process clear, structured and manageable.
Keep Digital Records
You may need to keep digital records of income, expenses, invoices, receipts, VAT information, rental income or business transactions.
Use Compatible Software
MTD requires the use of software that can maintain digital records and send information to HMRC in the correct format.
Submit VAT Returns Digitally
VAT-registered businesses must keep digital VAT records and submit VAT returns using compatible software.
Send Quarterly Updates
For MTD for Income Tax, sole traders and landlords may need to send quarterly summaries of income and expenses to HMRC.
Submit End-of-Year Information
Quarterly updates do not replace the final tax process. At the end of the tax year, information still needs to be reviewed, adjusted where needed and submitted properly.
WHY MTD MATTERS
A more accurate, organised and modern way to manage tax
Making Tax Digital is designed to improve the way tax records are kept and submitted.
The aim is to reduce errors, improve accuracy, encourage better record-keeping and make tax reporting more efficient.
Instead of relying on paper records, manual calculations or rushed year-end preparation, MTD encourages taxpayers to keep better records throughout the year.
For many businesses, landlords and sole traders, this can provide a clearer view of income, expenses and tax responsibilities.
Reducing Errors
Digital records and compatible software can reduce the risk of mistakes caused by manual calculations, missing paperwork or poor record-keeping.
This helps make tax reporting more accurate and gives you greater confidence that the right information is being submitted.
Better Financial Visibility
Keeping records digitally throughout the year can help you understand your income, expenses and tax position more clearly.
Instead of waiting until the end of the year, you can stay more aware of where your finances stand.
Less Last-Minute Stress
MTD encourages regular record-keeping, which can reduce the pressure of trying to organise everything at the last minute.
With the right support, your records can stay clearer, more complete and easier to manage.
Improved Compliance
Making Tax Digital helps move tax management away from rushed annual preparation and towards more consistent record keeping.
This makes it easier to keep up with HMRC requirements, prepare for submissions and deal with tax responsibilities in a more organised way.
HOW WE HELP
Personal support for helping you to get ready for MTD
Rassam Accounting Services helps you understand exactly where you stand with Making Tax Digital.
We can review whether MTD applies to you now, whether it is likely to apply in the future and what steps you need to take to prepare.
If you are VAT registered, we can support you with digital VAT records, VAT return preparation and MTD-compatible submissions.
If you are a sole trader or landlord, we can help you understand the Income Tax thresholds, organise your income and expense records, prepare for quarterly updates and move towards digital record-keeping.
We can also guide you with software, bookkeeping processes, deadlines and the information HMRC may require.
The aim is simple: to help you stay compliant, organised and confident without having to figure everything out alone.
Contact Us
Need help preparing for Making Tax Digital?
Tell us what support you need and we will get back to you as soon as possible.
Whether you need help with MTD for VAT, MTD for Income Tax, digital bookkeeping, quarterly updates, software or general HMRC guidance, Rassam Accounting Services can help you move forward with clarity and confidence.