Making Tax Digital for Income Tax Services
Are you ready for Making Tax Digital? From April 2026, HMRC requires sole traders and landlords with income over £50,000 to submit quarterly digital tax updates. Don’t get caught unprepared.
At Taxes4U, we make MTD compliance simple, stress-free, and affordable. Whether you’re a sole trader, landlord, or self-employed professional, our expert team handles your quarterly submissions, digital record keeping, and year-end tax returns so you can focus on running your business.
What Is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax is HMRC’s digital reporting system that replaces the traditional annual Self Assessment for eligible taxpayers. Instead of submitting one tax return per year, you’ll now:
- Keep digital records of all income and expenses
- Submit quarterly updates to HMRC (every 3 months)
- File a final digital declaration at year-end
- Use MTD-compatible software for all submissions
When does MTD start?
- April 2026: Income over £50,000
- April 2027: Income over £30,000
- April 2028: Income over £20,000
Not sure if MTD applies to you? Learn more about MTD requirements in our comprehensive guide or book a free consultation with our team.
Who Needs MTD for Income Tax?
You must comply with Making Tax Digital if you’re:
- Self-employed (sole trader) with business income over the threshold
- Landlord with property rental income over the threshold
- Combination of both where total qualifying income exceeds the threshold
Your qualifying income includes:
- Self-employment trading income (before expenses)
- UK property rental income
- Foreign property rental income
Income that doesn’t count toward the threshold:
- Employment income (PAYE)
- Pension income
- Savings interest
- Dividend income
Example: If you earn £35,000 from self-employment and £20,000 from rental property, your total qualifying income is £55,000 - meaning you must join MTD from April 2026.
Our MTD Income Tax Services
What We Do For You
- Quarterly Digital Submissions - We submit your income and expenses to HMRC every quarter using MTD-compliant software - no stress, no missed deadlines.
- Digital Record Keeping - We maintain all your records digitally in approved software, ensuring full HMRC compliance.
- Year-End Tax Returns - Your final tax return is prepared and submitted digitally through MTD software by the 31st January deadline.
- Penalty Appeal Support - If you face late filing penalties, we help you appeal to HMRC and get them reduced or cancelled.
- MTD Software Setup - We’ll help you choose and set up the right MTD-compatible software for your needs.
- Ongoing Tax Advice - With quarterly contact, we catch tax-saving opportunities throughout the year - not just at year-end.
Transparent Pricing: Choose Your Service Level
We offer three clear service tiers based on your complexity and needs:
BASIC - £340/year
Perfect for: Simple businesses with one income source
- £55 per quarter × 4 = £220
- £120 final tax return
- Includes: One self-employed trade OR one rental property
- Clean, organized records required
- Limited email support
STANDARD - £480/year (Most Popular)
- £75 per quarter × 4 = £300
- £180 final tax return
- Includes: Employed + self-employed, up to 2 trades, up to 2 properties
- Light bookkeeping assistance
- Enhanced support
COMPREHENSIVE - £650/year
- £100 per quarter × 4 = £400
- £250 final tax return
- Includes: 3+ properties, multiple businesses, full bookkeeping, unlimited support
- Tax planning advice included
Why Choose Taxes4U for MTD?
- MTD Experts Since Day One - We’ve been preparing for Making Tax Digital for years. Our team is fully trained on MTD regulations, software, and HMRC requirements.
- Multilingual Service - We speak English, Russian, Romanian and Lithuanian - making MTD compliance easy for London’s diverse business community.
- 100% Online Service - No office visits needed. Everything is handled online through secure cloud software, wherever you are in the UK.
- Quarterly Contact = Better Tax Planning - Unlike annual tax returns, quarterly submissions mean we spot tax-saving opportunities throughout the year.
- Fixed, Transparent Pricing - No hidden fees. No hourly rates. You know exactly what you’ll pay from day one.
- Penalty Protection - We submit on time, every time. If HMRC issues penalties, we’ll help you appeal.
How MTD Works: Your Quarterly Schedule
Understanding the MTD timeline is crucial. Here’s what happens each tax year:
Quarter 1: April 6 - July 5
- Submission deadline: August 7
- What we submit: Income and expenses for Q1
Quarter 2: July 6 - October 5
- Submission deadline: November 7
- What we submit: Income and expenses for Q2
Quarter 3: October 6 - January 5
- Submission deadline: February 7
- What we submit: Income and expenses for Q3
Quarter 4: January 6 - April 5
- Submission deadline: May 7
- What we submit: Income and expenses for Q4
Year-End Final Declaration
- Submission deadline: January 31 (following tax year end)
- What we submit: Complete tax return with all adjustments
- Payment deadline: January 31
Important: You must complete all quarterly submissions before you can file your final return.
MTD Software: What You Need
All MTD submissions must use HMRC-approved software. We work with the best platforms to keep your compliance simple:
Software We Support:
- TaxCalc (bridging software - our preferred choice)
- QuickBooks
- Xero
- FreeAgent
- Sage
Don’t have software yet? No problem. We’ll help you choose the right solution and get you set up.
Already use spreadsheets? We can use bridging software to connect your Excel sheets to HMRC digitally.
Avoiding MTD Penalties
HMRC has introduced a points-based penalty system for MTD non-compliance:
Late Submission Penalties
- 1 point for each missed quarterly update or final declaration
- £200 fine once you reach 4 penalty points
- Points reset after 12 months of compliance
Late Payment Penalties
- Day 16-30: 2% of tax owed
- Day 31+: Additional 2% + daily interest
Good news for 2026/27: HMRC won’t issue penalty points for your first four quarterly submissions. This gives you time to adapt to the new system.
Common MTD Questions
- Do I have to join MTD if my income varies?
HMRC looks at your 2024/25 tax return to determine if you qualify for the April 2026 start. If your income exceeds £50,000 on that return, you must join MTD - even if your income drops in future years. - Can I do MTD myself?
Yes, but it’s complex. You’ll need MTD software, must submit quarterly on time, and handle all digital record-keeping yourself. Most business owners find it more cost-effective to hire an accountant. - What if I’m also employed (PAYE)?
Employment income doesn’t count toward the MTD threshold. But if you’re employed AND self-employed, you’ll report both on your tax return. See our Standard tier which covers this scenario. - Do partnerships need MTD?
Not yet. HMRC hasn’t announced a date for partnerships. Currently, MTD only applies to sole traders and individual landlords. - What happens if I miss a quarterly deadline?
You’ll earn a penalty point. Four points = £200 fine. That’s why we handle all deadlines for you - so you never miss one.
Getting Started with MTD
Ready to become MTD-compliant? Here’s how to get started with Taxes4U:
Step 1: Book Your Free Consultation
We’ll review your income, explain which MTD tier suits you, and answer all your questions.
- Call: +44 7810 020444
- Email: info@taxes4u.co.uk
- WhatsApp: Message us instantly
Step 2: Choose Your Service Tier
Based on your income sources and complexity, we’ll recommend the right tier.
Step 3: We Set You Up
We register you with HMRC for MTD, set up your software, and configure everything for quarterly submissions.
Step 4: Ongoing Compliance
Every quarter, we submit your updates on time. At year-end, we complete your final return. Simple.
Resources & Further Reading
- Complete MTD for Income Tax Guide - Everything you need to know about MTD requirements, deadlines, and exemptions
- Self Assessment Services - Traditional tax return services for those not yet in MTD
- About Taxes4U - Learn more about our team and multilingual
- Contact Us - Get in touch for a free MTD consultation