Making Tax Digital (MTD): When and How?

John Massey
Nov 15
2 min read

Updated: 3 days ago

A lot (arguably too much!) has been written about MTD since the idea first appeared in 2015. After years of delays, it’s finally being introduced — starting with sole-traders and landlords.

This guide strips away the noise and explains when MTD starts for you and how you can choose to handle it.

When Does MTD Start?

Your start date depends on your turnover, and specifically your Qualifying Income.

From that date, you must keep digital records and submit Quarterly Updates using bookkeeping software.

What Counts as Turnover for MTD?

Turnover is your top-line income, or the value of sales before expenses are deducted.
To be precise, your MTD start date threshold is determined by your Qualifying Income - which is your turnover from self-employment and property.
Other sources of income are ignored.

Example: How to Calculate Your Qualifying Income

For example, your gross income (before you deduct expenses) could be:

£25,000 from rental income
£27,000 from self-employment income

In this example, your total qualifying income would be £52,000, making your start date April 2026.

Other FAQ's are answered here: Get ready for Making Tax Digital for Income Tax - when to start

How to Implement MTD in Practice

Choose the level of support that matches your confidence, time and workload:

DIY (you keep records and make your own quarterly submissions)
Supported MTD (you keep records; I review and submit quarterly)
Fully Managed (I handle bookkeeping + quarterly accounts + submissions)

You’ll find each option outlined clearly below — please take a moment to see which one feels right. If you’re unsure, just reach out and we’ll talk it through together.

Key Takeaways 📌

⚠️ The biggest change is for sole-traders and landlords not already using bookkeeping software. If that's you, get in-touch for bespoke advice.

1️⃣ Determine your MTD start date

2️⃣ Decide on your preferred approach: DIY, Supported or Managed

3️⃣ Get in-touch so we can confirm your plan together.

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