The short answer
Use this as your working routine from first setup to an accepted quarterly update.
What MTD for Income Tax requires
Making Tax Digital for Income Tax applies in phases based on qualifying gross self-employment and property income: over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. Exemptions and special circumstances can change whether or when you must join.
If you are in scope, you use compatible software to create and preserve digital records, send quarterly updates for each business, and submit your Income Tax return after the tax year. Quarterly updates are summaries of business income and expenses, not separate tax returns or tax-payment demands.
Why a regular record-keeping routine matters
HMRC requires the digital records for a quarterly period to exist before you send that update or reach its deadline. Creating records close to the transaction date makes missing income, unclear expenses and incorrect categories easier to fix while the evidence is still available.
Each quarterly update is cumulative from the start of the tax year to the end of the update period. Correcting a digital record therefore changes the totals included in the next update. You normally do not need to resend every earlier quarter just because you fixed an item later in the year.
1. Set up the connections you need
In Account, connect HMRC for filing and Stripe if you want to create invoices and have paid invoices added to your records. WhatsApp is optional: use it for chat-based capture, or work directly in Activity instead. Bank sync is planned for early 2027 and is not required for this workflow.
Open Account2. Keep records as you trade
Add income and expenses in Activity, create invoices in the Invoices workspace, or send receipt photos, PDFs, and messages through WhatsApp. Give every transaction enough context to be categorised and retained with its evidence.
Record in Activity3. Review the things that need attention
Use Activity to review categories, receipt evidence, and records marked for review. In WhatsApp, UNCATEGORISED and LAST are quick ways to find and correct the latest gaps.
See command reference4. Check the quarter before you file
Use READY for a quick health check and DUE to see the next obligation. When the quarter looks complete, use PREVIEW to open the review page and inspect the figures.
Understand filing commands5. Submit and retain the evidence
Submit only after you have reviewed the preview. Keep the accepted submission receipt, figures, and underlying digital records available in Filing for your own records or an accountant handoff.
See how filing worksBefore you move on
- HMRC is connected when you are ready to file
- Income and expenses are recorded with useful descriptions
- Uncategorised and needs-review items are resolved
- READY and PREVIEW have been reviewed before submission
- Submission evidence is retained in Filing
Frequently asked questions
Is a quarterly update the same as a tax return?
No. A quarterly update is a cumulative summary of income and expense totals for a business. You still finalise your records, make relevant adjustments and submit an Income Tax return after the tax year.
Do I need WhatsApp for MTD?
No. WhatsApp is an optional capture and command interface. You can keep records, review figures and file through the SimpleTaxFlow web application.
Do I need a separate quarterly update for each business?
Yes. HMRC requires separate digital records and quarterly updates for each self-employment business, with property businesses also handled as their relevant income source.
How long must digital records be kept?
HMRC says you need to keep MTD digital records for at least five years after the 31 January submission deadline for the relevant tax year.
Check the official rules
Tax rules can change and individual circumstances matter. Use HMRC’s current guidance to confirm the treatment that applies to you.
Put the guide into practice.
Open the relevant workspace and complete the next step with this guide available in another tab.
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