Making Tax Digital for Income Tax
What Making Tax Digital for Income Tax means for you, what you need to do, and how B Keepers can support you.
What Making Tax Digital for Income Tax means
Making Tax Digital for Income Tax is HMRC’s way of moving income tax reporting online. If you’re in scope, you’ll need to keep digital records and send quarterly updates to HMRC, then submit a final declaration (or end-of-period statement and final declaration) instead of a single annual Self Assessment return.
Who it’s for
Making Tax Digital for Income Tax applies to sole traders and landlords with qualifying income above the threshold (e.g. £50,000 for general income, £50,000 for property). HMRC is phasing this in; we can help you check whether you’re in scope and from when.
What you’ll do
You’ll keep records digitally (we use FreeAgent, which is compatible with Making Tax Digital for Income Tax, so your books are ready), send quarterly summaries to HMRC, and complete a final declaration after the end of the period. Your B-Keeper will guide you through each step so nothing is missed.
Deadlines
Quarterly updates and the final declaration have set deadlines. We’ll remind you and prepare the submissions so you stay on time and avoid penalties.
Software
HMRC requires compatible software to keep records and submit under Making Tax Digital for Income Tax. We use FreeAgent (and Mettle for banking), which are compatible with Making Tax Digital for Income Tax. Sage support is coming soon.
Penalties
Late or missing submissions can lead to points and penalties under the new regime. Keeping on top of deadlines and having your records in order reduces the risk. We’re here to help you stay compliant.
How B Keepers can support you
We keep your books in FreeAgent, ensure your records are ready for Making Tax Digital for Income Tax, and can help with submitting quarterly updates and the final declaration. You get one clear monthly fee and a dedicated B-Keeper so you’re never left wondering what to do next.
Why people trust us
We work to high professional standards. Transparent pricing, no surprises, and a focus on sole traders and landlords mean we’re set up to make Making Tax Digital for Income Tax straightforward for you.