Making Tax Digital
Making Tax Digital. Made manageable.
Making Tax Digital for Income Tax changes how many self-employed individuals and landlords keep records and report income to HMRC.
JMP can help you understand your obligations, prepare your records and establish a straightforward process for meeting the requirements.
Who may be affected
Is this relevant to you?
- Sole traders
- Self-employed individuals
- Landlords
- Individuals with qualifying property and trading income
Whether you are affected depends on your qualifying gross income and the commencement dates set by HMRC rules. Exemptions apply in some circumstances. We will confirm your position before recommending any changes. Making Tax Digital does not remove the Self Assessment requirement — those affected will still need to file a Self Assessment return.
Thresholds, dates and exemptions on this page must be verified against official HMRC guidance before publication.
Our service
From eligibility to final declaration.
Step 1: Eligibility assessment
Confirming whether, and from when, you are within scope.
Step 2: Software selection and setup
Choosing compatible software that suits the way you work.
Step 3: Digital record keeping
Establishing a simple routine for recording transactions.
Step 4: Income and expense categorisation
Making sure records are categorised correctly.
Step 5: Quarterly updates
Preparing and submitting updates to HMRC.
Step 6: Year-end adjustments
Finalising your figures after the tax year ends.
Step 7: Final declaration
Confirming your overall tax position with HMRC.
Step 8: Tax liability estimates and planning
Helping you anticipate and plan for tax payments.
Questions
Frequently asked questions
What is Making Tax Digital for Income Tax?
It is an HMRC requirement for people within scope to keep digital records of business and property income and expenses using compatible software, send quarterly updates to HMRC and submit a final declaration after the end of the tax year.
Does it replace my Self Assessment return?
No. Making Tax Digital does not remove the Self Assessment requirement for individuals affected. You will still need to file a Self Assessment return, in addition to keeping digital records and sending quarterly updates.
Who needs to comply?
Sole traders and landlords whose qualifying income is above the threshold set by HMRC for the relevant tax year. Some people are exempt or can apply for an exemption. Not everyone with rental or self-employed income is automatically affected.
When does it start?
HMRC has published a phased introduction based on qualifying income in an earlier tax year. At the time of writing, HMRC guidance states:
- from 6 April 2026 for qualifying income over £50,000
- from 6 April 2027 for qualifying income over £30,000
- from 6 April 2028 for qualifying income over £20,000
These dates and thresholds must be checked against current HMRC guidance before publication and may change.
What counts as qualifying income?
Broadly, your total gross income (before expenses) from self-employment and property. Other income, such as employment income or dividends, is generally not included. HMRC rules determine exactly what counts.
Do I need accounting software?
Yes. You will need software that is compatible with Making Tax Digital. We can help you choose and set up a suitable option.
What are quarterly updates?
Summaries of your income and expenses sent to HMRC through your software every three months. They are not tax returns, and tax is not usually paid with each update.
What happens at the end of the tax year?
You make any year-end adjustments, include other income and submit a final declaration confirming your tax position.
Can JMP help me prepare?
Yes. We can assess whether you are affected, set up your software and records, and take care of quarterly updates and your final declaration as part of an agreed engagement.
Get MTD ready.
Find out whether Making Tax Digital applies to you and what you need to do next.