Making Tax Digital (MTD) is a government initiative designed to transform the UK tax system, making it more effective, efficient, and easier for taxpayers to get their tax right. The vision was first introduced in Budget 2015, with a roadmap published later that year setting out plans for a fully digital tax system.
Since then, HMRC has been gradually rolling out MTD in stages.
If you’re a sole trader or landlord earning over the relevant threshold, from April 2026 you’ll need to:
Keep your business records digitally.
Use MTD-compatible software to send quarterly updates to HMRC.
Finalise your business income via an End of Period Statement (EOPS) and submit a Final Declaration annually.
Now is the time to prepare—don’t wait until the deadline! Transitioning early can make the change smoother and give you time to find the best system for your needs.
We work with a range of MTD-compatible software providers and can help you find the best solution for your business.
What are the advantages of going digital?
Switching to digital accounting brings many benefits beyond MTD compliance. With cloud-based bookkeeping software, you can:
Get a real-time view of your finances anytime, anywhere.
Keep your accounts securely online—no installations, no backups needed.
Avoid unexpected software or maintenance costs.
Automatically import bank transactions daily.
Snap a photo of receipts and invoices to record them on the go.
Monitor cash flow, debts owed, payments due, and your bank balance 24/7 from your phone or laptop.