Making Tax Digital: What It Means and How to Get Ready
Making Tax Digital (MTD) is HMRC’s plan to move tax reporting online.
If you’re self-employed or a landlord, there are some big changes coming your way over the next few years.
At Lynda Stone Bookkeeping, I help businesses and individuals across Wakefield and West Yorkshire stay organised and ahead of HMRC deadlines. I’ve got a simple breakdown for Making Tax Digital (MTD) of what’s happening, when it’s happening and how to stay ahead of the game.
What Is Making Tax Digital (MTD)?
MTD is a government initiative designed to make it easier for individuals and businesses to get their tax right. It means keeping digital records, using approved software, and sending quarterly updates to HMRC instead of waiting until the end of the tax year.
It’s all about reducing mistakes and making tax submissions more accurate and efficient but it does mean a change in how you keep your records and report your income.
You can read more on the official HMRC guidance here:
https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital
Who Does It Affect?
- From April 2026, self-employed individuals and landlords with an income of over £50,000 will need to join MTD for Income Tax Self Assessment (ITSA).
- From April 2027, the threshold drops to £30,000.
- From April 2028, the threshold drops to £20,000.
This means if you fall into these groups, you’ll no longer be able to submit one yearly tax return. Instead, you’ll be sending updates to HMRC every 3 months.
What Do You Need to Do?
To be ready for MTD, you’ll need:
✅ MTD-compatible software to record your income and expenses digitally
✅ To send updates every quarter (four times a year)
✅ To submit a final declaration at the end of the year to confirm your income
Spreadsheets alone won’t cut it anymore, the software must be able to communicate with HMRC directly.
Sounds Complicated?
It doesn’t have to be! Getting set up early is the best way to stay ahead and avoid stress later on. As a trusted bookkeeper in Wakefield, Lynda Stone Bookkeeping can help you through the process.
I work with individuals and businesses to ensure records are accurate, returns are submitted on time, and HMRC compliance is maintained.
📍 Based in Wakefield, I also work remotely with clients across the UK.
Contact Me
Book an appointment for a no-obligation, free chat to go over your bookkeeping and/or Self Assessment needs. Alternatively, feel free to get in contact with me on the details below.