VMK Accountants Limited: Business Advisors & Tax Consultant
    Contact
    MTD for Income Tax & VAT

    Making Tax Digital support without the confusion.

    VMK Accountants helps sole traders, landlords and businesses prepare for digital records, compatible software, quarterly HMRC updates and year-end tax reporting with confidence.

    Sole TradersLandlordsQuarterly UpdatesDigital RecordsVAT MTDSoftware Setup

    MTD readiness dashboard

    Is your record keeping ready?

    £50k+

    From 2026

    £30k+

    From 2027

    £20k+

    From 2028

    I receive rental or self-employment income
    My gross income may exceed £20,000, £30,000 or £50,000
    I currently use paper records or spreadsheets
    I am not sure if my software is MTD-compatible
    I want help with quarterly HMRC submissions
    Ask VMK to check my MTD position

    What is Making Tax Digital?

    MTD is HMRC’s digital tax system. Instead of relying on once-a-year records, taxpayers in scope must keep digital records and send updates using compatible software.

    VMK can help with:

    software choice, record setup, quarterly updates, VAT, Income Tax and ongoing compliance support.

    Making Tax Digital is a UK government initiative designed to modernise tax reporting by requiring digital records and electronic submissions to HMRC.

    It already applies to VAT for many businesses, and MTD for Income Tax is being phased in for sole traders and landlords based on qualifying income levels.

    Keep digital records

    Income and expenses must be recorded digitally using MTD-compatible software or a digital-link system.

    Send quarterly updates

    You will submit summary income and expense updates to HMRC during the year.

    Submit a final declaration

    After the tax year ends, final adjustments and other income are confirmed through the year-end process.

    Maintain digital links

    Your records should flow digitally without manual copy-and-paste for MTD-relevant information.

    MTD timeline

    When Making Tax Digital applies.

    The rules are being introduced in stages for sole traders and landlords. Getting ready early helps avoid rushed software and record-keeping changes.

    First wave

    6 April 2026

    MTD starts for income above £50,000

    Sole traders and landlords with qualifying income over £50,000 based on their 2024/25 tax return will need to follow MTD for Income Tax.

    First filing date

    7 August 2026

    First quarterly update deadline

    For those in the first MTD wave, the first quarterly update for the 2026/27 tax year is due by 7 August 2026.

    Second wave

    6 April 2027

    Threshold reduces to £30,000

    Sole traders and landlords with qualifying income over £30,000 based on their 2025/26 tax return will be brought into MTD.

    Third wave

    6 April 2028

    Threshold reduces to £20,000

    Sole traders and landlords with qualifying income over £20,000 based on their 2026/27 tax return will be brought into MTD.

    How VMK helps

    We turn MTD into a clear step-by-step process.

    MTD can feel confusing because it affects software, records, quarterly reporting and year-end tax. We help you build a simple system that works in real life.

    Not just software setup

    We help with the ongoing workflow: records, review, submissions, tax planning and deadline management.

    Step 01

    Check if MTD applies to you

    We review your rental income, self-employment income and tax return position to confirm when you need to start.

    Step 02

    Choose the right software

    We help you decide whether to use Xero, QuickBooks, Sage, bridging software or another suitable MTD-compatible system.

    Step 03

    Set up digital records

    We organise categories, bank feeds, receipts, expenses and record-keeping processes so the system is easier to manage.

    Step 04

    Handle quarterly updates

    We can prepare, review and submit quarterly updates so you are not trying to manage everything alone.

    Step 05

    Prepare the final declaration

    We review allowances, adjustments, other income and year-end figures before your final tax position is submitted.

    Step 06

    Keep you ahead of deadlines

    We provide reminders, ongoing support and practical advice so MTD does not become a last-minute panic.

    Benefits of getting ready

    Better records. Less stress. Clearer decisions.

    Less January pressure

    Regular digital record keeping means fewer last-minute surprises before the Self Assessment deadline.

    Clearer tax position

    Quarterly reviews help you understand your income, expenses and likely tax position earlier.

    Better business decisions

    Modern records give you clearer visibility over profit, cash flow and financial trends.

    Fewer record mistakes

    Digital systems reduce the chance of missing invoices, receipts or duplicated entries.

    More useful accountant support

    Instead of once-a-year filing, your accountant can advise you throughout the year.

    Future-ready compliance

    Getting ready early helps you avoid rushed software changes when HMRC deadlines arrive.

    MTD FAQs

    Common Making Tax Digital questions.

    A simple explanation of the questions clients usually ask before moving to digital tax reporting.

    Need help with Making Tax Digital?

    Don't navigate MTD alone. VMK Accountants can check when the rules apply to you, set up suitable software and support your quarterly HMRC updates.

    We Work With Industry-Leading Software

    XeroQuickBooksSageFreeAgentCapiumMoneysoftCCHOdooQuickFileZohoXeroQuickBooksSageFreeAgentCapiumMoneysoftCCHOdooQuickFileZoho