Making Tax Digital
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Made a Mistake in Your MTD Quarterly Update? Here’s What to Do Next
Sending your first Making Tax Digital quarterly update can feel like a major milestone. But what happens if you later notice that an invoice was missing, an expense was entered twice or a transaction was put in the wrong category? The important thing is not to panic. A quarterly update is a summary of the…
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MTD With More Than One Business or Rental Income: A Worked Example
Making Tax Digital can look straightforward when someone has one sole trader business and one bank account. It becomes less obvious when the same person has two businesses, earns rent from a property or also receives employment or dividend income. Do all the figures go into one quarterly update? Does every source count towards the…
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Your First MTD Quarterly Update
Your First MTD Quarterly Update Is Due by 7 August 2026: What Sole Traders and Landlords Need to Do Making Tax Digital for Income Tax is now live, and the first real deadline is almost here. If you’re a sole trader or landlord who joined MTD in April 2026, your very first quarterly update must…
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Making Tax Digital for Small Businesses: What Counts as Qualifying Income?
Many sole traders and landlords are unsure whether Making Tax Digital (MTD) for Income Tax will apply to them. One of the biggest areas of confusion is HMRC’s use of qualifying income when deciding who must comply. Understanding what qualifies as income, how HMRC calculates it, and when the rules apply can help you prepare…
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Making Tax Digital: A Simple Monthly Bookkeeping Routine Before Your Quarterly Update
Making Tax Digital for Income Tax is now part of the tax landscape for many sole traders and landlords. If your qualifying income means you are in scope, the biggest change is not just that you use software. It is that your records need to be kept digitally and updated regularly enough to support quarterly…
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Can You Use Spreadsheets for MTD Income Tax?
If you already keep your business or property records in Excel, Google Sheets, or another spreadsheet, the short answer is yes: you may still be able to use spreadsheets for Making Tax Digital for Income Tax. However, there is an important catch. A spreadsheet on its own is not usually enough unless it forms part…
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What Happens If Your Income Drops After You Join MTD?
Making Tax Digital for Income Tax is now live for sole traders and landlords whose qualifying income was over £50,000 in the 2024 to 2025 tax year. That has created a new question for many business owners: what happens if you were brought into MTD based on an earlier return, but your income has since…
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Can You Be Exempt From MTD Income Tax?
Making Tax Digital for Income Tax is now live for some sole traders and landlords, and one of the biggest points of confusion is whether everyone over the threshold has to join. The short answer is no. Some people are automatically exempt. Others can apply for an exemption. However, the rules are more specific than…
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Can You Change MTD Software After Signing Up?
If you have signed up for Making Tax Digital for Income Tax and already feel unsure about your software, you are not stuck with it. Many sole traders and landlords choose software quickly because the rules feel urgent. Later, they may realise the system is too expensive, too complicated, or not suited to the way…
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MTD for Landlords With Jointly Owned Property: What You Need to Report
Jointly owned property is one of the areas of Making Tax Digital for Income Tax that can catch landlords out. On the surface, it sounds simple enough. You receive rental income, you keep digital records and you send quarterly updates. But HMRC’s current guidance gives joint property owners extra flexibility, and if you miss that…