Making Tax Digital for Income Tax

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 whose combined self-employment and property income is above the threshold. HMRC is phasing it in by income level - £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. We can help you check whether you’re in scope and from when.

Already signed up by HMRC?

From September 2026 HMRC has been automatically signing up sole traders and landlords who are in scope but had not registered, and writing to tell them. If you have had one of these letters, you now need compatible software and quarterly updates in place. Read what the HMRC letter means and what to do next, or get an instant quote and we will take care of it.

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.

Read it for your situation

The detail differs depending on how you earn: Making Tax Digital for landlords, for sole traders, or use the free checker to see whether you are caught and from when.

Deadlines

Quarterly updates are due by 7 August, 7 November, 7 February and 7 May, each covering the tax year so far. The final declaration follows by 31 January, as with Self Assessment. We’ll remind you before every deadline 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, which is compatible with Making Tax Digital for Income Tax and free with Mettle, NatWest and RBS business bank accounts. 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.

What it costs

One fixed monthly fee: landlords from £35, sole traders from £45, both together from £65, excluding VAT. That covers digital record keeping, the quarterly updates and support with your final declaration. Add-ons like VAT, payroll and CIS are priced openly in the quote builder.

Launch offer: sign up by 31 December 2026 and your assisted bookkeeping is free until 5 April 2027, normally £7.50 a month.

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.

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