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MTD for Income Tax is now live — April 2026. If you earn over £50,000 from self-employment or property, you must comply now. Get compliant from £79+VAT/month →

Home › Services › Making Tax Digital

Live Now — April 2026

Making Tax Digital
for Income Tax —
We Handle It All

MTD for Income Tax is no longer optional. Sole traders and landlords earning over £50,000 must comply right now. We set up your software, submit your quarterly updates, and file your annual return — fully managed for £79+VAT per month.

Full MTD setup included — no extra charge
All 4 quarterly updates submitted for you
Annual end-of-period statement filed
HMRC-compliant software configured
MTD Rollout Schedule
April 2026 — Live Now
Self-employed & landlords with income over £50,000 must comply
Live — Act Now
April 2027
Threshold drops to £30,000 income
Coming Soon
April 2028
Threshold drops to £20,000 — affects nearly all self-employed
Upcoming
TBC
General partnerships brought into scope
To Be Confirmed

A fundamental change to how you report your income to HMRC

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) replaces the traditional annual self assessment tax return for affected taxpayers. Instead of one annual submission, you now need to make four quarterly updates to HMRC each year, followed by an end-of-period statement and a final declaration.

All records must be kept digitally, and submissions must be made using HMRC-approved software. You cannot file on paper or directly through HMRC’s website.

For sole traders and landlords who have never used accounting software, this is a significant shift. For those already using software, it still requires a change in how and when you report. Either way, getting set up correctly from the start is essential to avoid penalties.

What MTD requires you to do

Every tax year, for each income source

  • Keep digital records of all income and expenses
  • Submit a quarterly update to HMRC (April, July, October, January)
  • Submit an end-of-period statement after the tax year
  • Submit a final declaration to confirm your total income
  • Use HMRC-approved MTD-compatible software throughout
  • Respond to any HMRC queries on your submissions
  • Repeat the entire cycle every tax year

Does MTD apply to you?

MTD for Income Tax is being rolled out in phases based on income level. Check which phase applies to your situation.

Self-Employed — Over £50k

Sole traders with self-employment income exceeding £50,000 per year must comply from April 2026.

Live Now

Landlords — Over £50k

Landlords with property income exceeding £50,000 per year must comply from April 2026.

Live Now

Combined Income — Over £50k

If your combined self-employment and rental income exceeds £50,000, you are in scope from April 2026.

Live Now

Self-Employed — £30k–£50k

Sole traders and landlords earning between £30,000 and £50,000 will be required to comply from April 2027.

Coming April 2027

Lower Earners — Over £20k

From April 2028, MTD will extend to nearly all self-employed individuals and landlords earning above £20,000.

Coming April 2028

Employees & PAYE Only

If all your income is from PAYE employment and you have no self-employment or rental income, MTD does not apply to you.

Not Affected

We manage your MTD compliance end to end

From initial setup to every quarterly submission and final declaration, we handle everything. You just share your records with us.

1

MTD Registration & Setup

We register you for MTD with HMRC, set up your HMRC-compliant software, and configure your bank feeds so records update automatically.

2

Quarterly Bookkeeping Review

Each quarter we review your income and expenses, categorise everything correctly, and prepare your quarterly update ready for submission.

3

Quarterly Submission to HMRC

We submit your quarterly update directly to HMRC before the deadline. You receive confirmation once filed. No action needed from you.

4

Annual Statement & Final Declaration

After the tax year we prepare your end-of-period statement and final declaration, confirm your tax liability, and advise when and how much to pay.

HMRC’s new points-based penalty system

MTD comes with a new penalty regime. Miss a quarterly submission and you accumulate a penalty point. Reach the threshold and a financial penalty is triggered — then further penalties for each additional missed submission.

The financial cost of non-compliance adds up quickly. Getting set up correctly now is far cheaper than facing penalties later.

Get Compliant — £79+VAT/month
Each missed quarterly update +1 Penalty Point
Threshold reached — financial penalty £200
Each subsequent missed submission +£200
Late payment penalty (after 30 days) 2% of tax due
Late payment penalty (after 6 months) 4% of tax due

Simple, fixed-fee MTD compliance

One monthly fee covers everything. No separate charges for submissions, software, or support.

Already a KTS Client?
MTD compliance is included or discounted depending on your existing package.
Included
in Limited Company & Landlord packages

Existing client benefits
  • MTD included in all Ltd Company packages
  • MTD included in Landlord packages
  • MTD included in Sole Trader packages
  • No package upgrade required
  • Setup handled as part of onboarding
  • Quarterly submissions managed by your accountant
Ask About Your Package

If you are already on one of our monthly packages (Sole Trader, Limited Company, or Landlord), MTD for Income Tax is included in your existing fee. The standalone £79+VAT/month package is for new clients who need MTD compliance as their primary service.

We’ve been preparing for this for years

MTD is not new to us. We’ve been MTD-compliant for VAT clients since 2019 and have been preparing our Income Tax clients for this transition since it was first announced.

HMRC-Approved Software

We use and set up fully HMRC-approved MTD-compatible software for every client. Your records and submissions are always fully compliant.

We Hit Every Deadline

Four quarterly updates, one end-of-period statement, one final declaration — we track and submit every single one on time, for every client, every year.

One Named Accountant

You work with the same ACCA-qualified accountant throughout. They know your income, your records, and your circumstances inside out.

Same-Day Response

Questions about your MTD submissions, your tax liability, or your software? We respond the same working day — every time, without fail.

Fixed Monthly Fee

No hidden charges for extra submissions or additional support. £79+VAT per month covers absolutely everything in your MTD package.

Easy to Switch

Already have an accountant who isn’t set up for MTD? We handle the switch completely, including contacting them on your behalf.

MTD questions answered

Do I have to comply if I earn just over £50,000?
Yes. The £50,000 threshold is based on your qualifying income in the previous tax year. If your combined self-employment and rental income exceeded £50,000 in 2024/25, you must comply with MTD from 6 April 2026.
Can I still file a self assessment return under MTD?
For those in scope of MTD, the traditional self assessment return is replaced by four quarterly updates plus an end-of-period statement and final declaration. The annual self assessment form no longer applies to affected taxpayers.
What software do I need for MTD?
You need HMRC-approved MTD-compatible software. We select, set up, and manage the right software for your circumstances as part of your MTD package. You do not need to research or purchase software yourself.
What are the quarterly submission dates?
The four quarterly deadlines fall on 7 August, 7 November, 7 February, and 7 May each year, covering the preceding quarter of the tax year. We submit all four on your behalf as part of your package.
Does MTD affect my tax bill?
MTD changes how you report your income to HMRC, not how your tax is calculated. Your tax liability is determined in exactly the same way as before. MTD does not increase your tax bill — though it may make you more aware of it throughout the year via your quarterly estimates.
I have both self-employment and rental income. How does MTD work?
If you have multiple income sources (e.g. self-employment and rental), you need to report each separately under MTD. This means separate quarterly updates for each income source. We handle both as part of your single monthly package.

Don’t wait until you get a penalty notice

MTD for Income Tax is live now. Get set up correctly from the start with a dedicated KTS accountant. Fixed fee, no fuss, fully managed.

Get Compliant — £79+VAT/month WhatsApp Us 07533 109005