Sorted for Making Tax Digital?
Making Tax Digital (MTD) is HMRC's move to take tax off paper. You keep your records in software, and the software files them for you. It already applies to VAT, and reaches income tax from April 2026. AccountsOS keeps your records digital and files straight to HMRC, so MTD becomes one thing you don't have to think about.
What is Making Tax Digital, really?
For decades, tax meant keeping a shoebox of receipts and a spreadsheet, then typing the totals into an HMRC website once a year. Mistakes were easy and nobody enjoyed it.
Making Tax Digital is HMRC's plan to change that. Two things are now the rule. First, you keep your records digitally, in software, as you go. Second, you file your returns through that software, which sends them to HMRC directly. The old “log in and type it in” form is being switched off.
The idea is fewer errors and less of a once-a-year scramble. The catch is that you now need software that talks to HMRC, and for some people, more frequent filing. That is where a tool like AccountsOS earns its place: it keeps the records and does the filing, so the rules are met in the background.
Step 1
Keep records digitally
Your bank, receipts and invoices flow into software and get categorised.
Step 2
Software does the sums
Your return is worked out from those records, no copying figures by hand.
Step 3
File straight to HMRC
You confirm, the software submits, and HMRC sends back a receipt.
The Making Tax Digital timeline
MTD is arriving in stages. VAT is already here. Income tax follows, starting with higher earners and reaching most people by 2028.
MTD for VAT, everyone
Every VAT-registered business has to keep digital records and file VAT returns through MTD software. The old HMRC online VAT form is closed.
MTD for Income Tax, £50,000+
Sole traders and landlords with income over £50,000 a year start sending HMRC quarterly updates instead of one annual Self Assessment.
MTD for Income Tax, £30,000+
The same rules reach anyone with income over £30,000 a year.
MTD for Income Tax, £20,000+
The threshold drops again to £20,000 a year, bringing in most self-employed people and landlords.
Income tax thresholds are based on qualifying income for the relevant tax year. Source: gov.uk.
What does MTD mean for me?
Whether MTD applies, and when, comes down to what you do and how much you earn. Find yourself below.
You're VAT-registered
MTD already applies to you. You must keep digital records and file every VAT return through software. AccountsOS does both, today.
MTD for VATYou're a sole trader
If your self-employed income is over £50,000, MTD for Income Tax starts for you in April 2026. Lower thresholds follow in 2027 and 2028.
MTD for sole tradersYou're a landlord
Rental income counts too. The same April 2026 / 2027 / 2028 thresholds apply, and your property income is added to any self-employed income.
MTD for landlordsYou run a limited company
MTD for Corporation Tax has no start date yet. For now you're only affected if your company is VAT-registered.
MTD for limited companiesYou're a small business
Whether MTD applies depends on your VAT registration and income, not your industry. Most growing businesses are caught by VAT first, then Income Tax.
Best MTD software UKYou're a bookkeeper or accountant
Manage MTD filing across your clients from one place. AccountsOS keeps each set of books digital and files cleanly, so you handle exceptions, not data entry.
AccountsOS for practicesMTD, handled for you
Most MTD software just gives you a tidier form to fill in. AccountsOS does the work behind it, so you meet the rules without becoming a bookkeeper.
Your records stay digital, automatically
Bank feeds, receipts, invoices and bills all land in one place and get categorised for you. That's the digital record HMRC asks for, kept without you thinking about it.
Finn files it, you just confirm
Finn works out the return from your bookkeeping, shows you the figures, and files them straight to HMRC the moment you say go. No forms to copy out.
Deadlines never sneak up
Every VAT period and quarterly update is tracked. You get a nudge in good time, not a panic the night before.
Built to HMRC's standards
AccountsOS is HMRC-recognised MTD software, filing VAT returns directly to HMRC in production today. When Income Tax goes live in 2026, you'll already be set up.
Common questions
What is Making Tax Digital in simple terms?
It is HMRC's plan to take tax off paper. Instead of typing figures into an HMRC website once a year, you keep your records in software and that software sends them to HMRC for you. It started with VAT and is expanding to income tax.
When does MTD apply to me?
If you are VAT-registered, it applies now and has done since April 2022. For income tax: from April 2026 if your self-employed or rental income is over £50,000, from April 2027 over £30,000, and from April 2028 over £20,000.
Does MTD apply to limited companies?
MTD for Corporation Tax has no start date yet. A limited company is only affected today if it is VAT-registered, through MTD for VAT. MTD for Income Tax does not apply to limited companies.
Do I have to buy software for MTD?
Yes. MTD only works through HMRC-recognised software, and the HMRC online VAT form is closed. AccountsOS is HMRC-recognised MTD software and files your VAT return directly to HMRC.
What are quarterly updates?
Under MTD for Income Tax you send HMRC a short summary of income and expenses four times a year through software, instead of one annual Self Assessment return. Deadlines fall on 7 August, 7 November, 7 February and 7 May.
Can I be exempt?
Exemptions exist if you are digitally excluded, for example due to age, disability, location or religious belief, or where digital tools are not reasonably practicable. You have to apply to HMRC.
Let Finn handle MTD
File your VAT straight to HMRC today, and be ready for Income Tax before April 2026. Finn keeps the records and does the filing. You just confirm.
Start free14-day free trial. No card needed.
Go deeper on MTD
Detailed guides for every part of Making Tax Digital.