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MAKING TAX DIGITAL FOR INCOME TAX (MTD IT)

Why Choose Sadler Advisory?

Big changes are coming for the self-employed, sole traders and landlords. From 6 April 2026, HMRC will begin rolling out Making Tax Digital for Income Tax (MTD IT) – a new way of keeping records and reporting your income.
 

At Sadler Advisory, we’re already helping clients prepare for these changes. With our expertise and relationships with leading software providers, we can guide you through every step, whether you want full support or just the right advice to get started.
 

We make sure you understand what’s required, when it affects you, and how to stay compliant without unnecessary stress.

WHAT IS MTD FOR INCOME TAX?

Making Tax Digital for Income Tax is also referred to as MTD IT and MTD for Income Tax. It is HMRC’s new digital reporting system. If you are self-employed, a sole trader or earn income from property, you will need to:

 

  • Keep digital business records in MTD-compliant software
     

  • Submit quarterly updates of income and expenses to HMRC
     

  • Complete an End of Period Statement (EOPS) each year
     

  • Submit a final declaration by 31 January (similar to the current Self Assessment)
     

This means moving away from a single annual return towards more frequent updates, keeping you organised and giving HMRC more accurate, timely data.

WHEN DO YOU NEED TO START?

The start date depends on your turnover (total sales before expenses). HMRC is introducing MTD IT gradually:
 

  • 6 April 2026 – turnover above £50,000

  • 6 April 2027 – turnover above £30,000

  • 6 April 2028 – turnover above £20,000


Turnover is your total sales before expenses. For example, if you earn £52,000 in sales and have £15,000 of expenses, your turnover is still £52,000, so you would need to comply from April 2026.
 

When will MTD Income Tax apply to me.jpg

Not sure which category you fall into? We can check for you and plan ahead so there are no surprises.

WHAT WILL YOU NEED TO DO EACH QUARTER?

For each business you run, the process will involve:

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  • Keeping records in MTD IT compliant software – ideally connected to your business bank account
     

  • Explaining transactions – categorising income and expenses, attaching receipts or invoices
     

  • Submitting quarterly updates – HMRC only sees summary figures, not every transaction
     

  • Submitting a final declaration – also due by 31 January, alongside your self assessment for other non-sole trader income (if required).
     

It may sound like more admin, but with the right systems in place, the process can run smoothly and you might understand your business in better depth.

CHOOSING THE RIGHT SOFTWARE

There are many MTD IT compliant software options, each with different strengths depending on how your business operates.
 

We work closely with leading providers and can:
 

  • Recommend the best software for your business type
     

  • Set it up correctly and integrate it with your bank account
     

  • Train you to use it effectively
     

  • Or, if you prefer, manage it entirely on your behalf
     

If you’re already using software, you can check if it’s MTD IT ready via the HMRC website and we can help you switch if needed.

HOW TO GET PREPARED NOW

You still have time to prepare before your start date. We recommend:
 

  • Opening a dedicated business bank account
     

  • Getting into the habit of keeping digital records early
     

  • Uploading or scanning receipts and invoices regularly
     

  • Checking your turnover band so you know your start date
     

  • Talking to us about your setup as soon as possible
     

Taking these steps now will make the transition far smoother.

OUR SUPPORT AS YOUR ACCOUNTANT

Switching to MTD IT doesn’t have to be stressful. We offer a flexible range of support:
 

  • Advice only – helping you choose software and set it up
     

  • Training – showing you how to keep digital records and submit updates
     

  • Full service – where we handle everything on your behalf
     

We’ll ensure you remain compliant, avoid penalties, and have peace of mind as MTD IT is introduced.

TAKE THE STRESS OUT OF MTD IT

Whether you’re a sole trader or a landlord, we can make MTD IT simple.
 

Get in touch today to find out how we can support you through these changes.

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