Making Tax Digital for Income Tax, explained.
Plain-English answers for sole traders and landlords: who needs MTD and when, your quarterly update deadlines, digital records, expenses, penalties and the tax return.
Getting started with MTD
Qualifying income for MTD: how to work it out, with examples
How to work out qualifying income for Making Tax Digital for Income Tax: what counts, what does not, which tax year HMRC tests and joint property examples.
MTD exemptions: automatic exemptions and digital exclusion
Who is exempt from Making Tax Digital for Income Tax, how to apply as digitally excluded, what HMRC needs, how long it takes and what to do while you wait.
How to sign up for MTD for Income Tax: step by step
How to sign up for Making Tax Digital for Income Tax: who must sign up, what you need, what to do if HMRC signed you up, agents, and what happens after.
What is MTD bridging software? Bridging vs bookkeeping
What is MTD bridging software, how does it differ from full bookkeeping software, and how do you choose one using HMRC’s software finder? A plain guide.
Do I need Making Tax Digital for Income Tax? A quick check
Do I need Making Tax Digital? A five-question check for sole traders and landlords: qualifying income, the £50,000, £30,000 and £20,000 thresholds, exemptions.
Quarterly updates and deadlines
MTD quarterly update deadlines: periods and due dates
MTD quarterly update deadlines are 7 August, 7 November, 7 February and 7 May. Standard and calendar periods, cumulative updates, sending early, late updates.
MTD for Income Tax penalties: points and late payment rules
MTD for Income Tax penalties explained: penalty points, the 4-point threshold and £200 penalty, the 2026 to 2027 easement, late payment penalties and interest.
MTD deadlines 2026 to 2027: every update and payment date
MTD for Income Tax deadlines for 2026 to 2027: the four quarterly update dates, your last Self Assessment return, payments on account and the first MTD return.
Records and expenses
Cash basis or traditional accounting? Sole traders and landlords
Cash basis or traditional (accruals) accounting: the default since 2024 to 2025, how to opt out, who cannot use cash basis, worked examples and landlords.
Spreadsheet for MTD: how to send a quarterly update from it
Can you use a spreadsheet for Making Tax Digital? Yes, with bridging software. What your spreadsheet needs, digital links and how totals become an update.
Do I have to upload receipts for Making Tax Digital?
Do you have to send receipts to HMRC under Making Tax Digital? No. What digital records you must keep, which receipts to hold on to and for how long.
Allowable expenses for sole traders: what you can claim
Allowable expenses for sole traders: HMRC’s expense categories, what is not allowable, equipment, the cash basis and simplified expenses at 2026 to 2027 rates.
Digital records for MTD: what each record must contain
What a digital record must contain for Making Tax Digital: the amount, date and category, with examples of good records for sole traders and landlords.
Landlords
MTD for jointly owned property: what each owner sends
Making Tax Digital for jointly owned property: how qualifying income uses your share, the records each joint owner keeps, quarterly updates and finance costs.
Year end and payments
Payments on account explained: dates, rules and MTD
Payments on account explained: the 31 January and 31 July dates, the balancing payment, when you do not have to pay them, reducing them and what MTD changes.
MTD final declaration: your year-end tax return in 7 steps
The MTD final declaration explained: finish quarterly updates, make year-end adjustments, add other income, check HMRC’s calculation and submit by 31 January.
Do you pay tax quarterly under MTD? Updates vs payments
Do you pay tax every quarter under Making Tax Digital? No. Quarterly updates only report figures. You still pay by 31 January and 31 July, as you do now.
Looking for instructions rather than reading?
Turn the ideas into a working MTD routine.
Keep digital records, invoices, reports and supported quarterly submissions together in SimpleTaxFlow.