Making Tax Digital (MTD)

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) is HMRC’s initiative to move tax reporting fully online. It requires sole traders and landlords to keep digital records and submit returns using compatible software.

The aim is to improve accuracy and reduce errors but for many, it introduces new systems and processes that need to be set up correctly.

Who Does It Apply To?

VAT-registered businesses (already in scope)

Landlords and sole-traders earning qualifying income:

• over £50,000 for tax year 2024/25 MTD applies from 6 April 2026

• over £30,000 for tax year 2025/26 MTD applies from 6 April 2027

• over £20,000 for tax year 2026/27 MTD applies from 6 April 2028

If you fall into one of these categories, you will need to comply with MTD requirements.

What does MTD require?

Keep digital records

Your income and expenses must be recorded digitally.

Ensure everything is connected

Use compliant software

Submit updates regularly

Your systems must link correctly to avoid compliance issues.

You will need to submit quarterly returns to HMRC throughout the year. There is also a requirement to submit an annual final declaration to HMRC by 31 January.

Returns must be submitted through compliant software such as Xero, QuickBooks or FreeAgent. We tailor the software solutions to your needs.

How Aureus supports you

We set up and manage your transition to Making Tax Digital so you can stay compliant without disruption.

Our team can help your transition through:

• Set-up of MTD-compliant software

• Migration from manual records to digital records

• Ongoing bookkeeping and submissions

• VAT and income tax compliance

• Clear guidance tailored to your situation

Why getting this right matters

Failing to comply with MTD can lead to penalties, missed deadlines, and unnecessary stress.

Getting the structure right from the start ensures your records are accurate, your submissions are timely, and your business stays in control.

Need help with Making Tax Digital?

Whether you’re starting from scratch or need to fix an existing setup, we can help you get compliant quickly and properly.