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MTD Income Tax

Making Tax Digital for Income Tax goes live April 2026.

Quarterly submissions, digital records, and software setup for UK landlords and sole traders above the £50,000 threshold.

MTD Income Tax is the biggest change to UK personal tax in a generation. Affected taxpayers must keep digital records and submit four quarterly updates per year — plus a final declaration. No grace period. Penalties start from the first missed submission.

Who is affected by MTD Income Tax

Is this for you?

  • Landlords with gross rental income above £50,000 (from April 2026)
  • Sole traders with gross income above £50,000 (from April 2026)
  • Landlords and sole traders above £30,000 (from April 2027)
  • Combined-income individuals (rental + self-employment) above the threshold
  • Anyone currently filing annual self-assessment who crosses the threshold
What we do

What's included.

  • Eligibility assessment

    Confirm whether you're above the threshold and when MTD applies to you.

  • MTD-compatible software

    Set up Xero, FreeAgent, or similar with HMRC's MTD bridge.

  • Quarterly digital records

    Records kept to MTD digital-link standards throughout the year.

  • Quarterly submissions

    Four quarterly updates per year submitted to HMRC on time.

  • Final declaration

    Replaces the traditional SA100 — submitted by 31 January.

  • Penalty avoidance

    We track the new points-based penalty system and ensure you don't accumulate points.

How Compliance Vault™ applies

The system that turns this service into a year-round process.

Deadline Lock tracks all four quarterly MTD dates plus the final declaration. Evidence Pack captures records to MTD digital-link standards from day one — no retrospective re-mapping. Portfolio Reporting Pack delivers monthly numbers that feed each quarterly submission.

Read more about Compliance Vault™
Service standards

Documented in your engagement letter. Reviewed annually.

  • WhatsApp typically under 30 min
  • Email within 1 working day
  • Monthly close by the 7th
  • Phone manned reception, typically within 10 min
How it works

Three steps. No back-and-forth.

  1. Step 01: 20-minute discovery call

    We confirm fit and walk through how this service would work for your business.

  2. Step 02: Engagement and onboarding

    Engagement letter, Direct Debit, and Compliance Vault™ setup — typically within 24 hours.

  3. Step 03: Year-round delivery

    Monthly numbers, tracked deadlines, advisory raised — and an Annual Compliance Review every 12 months.

Fee

Bundled with landlord/sole-trader monthly compliance from £200/month

A specific fee is agreed in writing after your 20-minute discovery call. No hourly billing. No surprise charges. No add-on tiers.

Why RR Accountants

What you get from us that you don't get elsewhere.

  • Already onboarded clients

    We're preparing affected clients now, not in March 2026. The setup happens calmly, not in panic.

  • Quarterly cadence built in

    Compliance Vault™ already runs to a monthly cadence. Quarterly MTD submissions are a downstream output, not a new process.

  • Penalty system tracked

    MTD's points-based penalty regime is new. We track points and ensure clients never accumulate the threshold.

  • Software fully integrated

    We set up the software, configure the digital links, and run it for you — not a 'here's a username' approach.

Frequently asked

Making Tax Digital for Income Tax goes live April 2026 — common questions.

  • When does MTD Income Tax start?

    April 2026 for self-employed individuals and landlords with gross income above £50,000. April 2027 for those above £30,000. Below £30,000, MTD doesn't yet apply (the government has paused the rollout below this threshold).

  • How is gross income calculated?

    Gross income for MTD purposes is the total income from self-employment AND property combined — before deductions or expenses. If your rental income is £35,000 and your sole-trade income is £20,000, your combined gross is £55,000 — above the £50,000 threshold.

  • What are the quarterly submission deadlines?

    Submissions are due roughly one month after each quarter end: 7 August, 7 November, 7 February, 7 May (using a tax-year basis). The exact dates depend on your accounting period. Plus a final declaration by 31 January following the tax year.

  • What software do I need?

    You need MTD-compatible software with digital links — typically Xero, FreeAgent, QuickBooks, or one of HMRC's recognised bridging products. We set this up during onboarding. You cannot use spreadsheets alone; spreadsheets can be part of the chain but must have digital links into the submission software.

  • What happens if I miss a quarterly submission?

    MTD has a new points-based penalty system. Each missed submission earns a point; accumulating 4 points (for quarterly filers) triggers a £200 penalty plus further penalties for ongoing non-compliance. Points last 24 months. We track these for every client.

Related services

Often handled together.

Book a 20-minute call.

We'll confirm whether we're a fit, and if we are, we'll tell you exactly what mtd income tax would look like for your business.