Handle MTD without putting pressure on your practice

Making Tax Digital (MTD) is an HMRC initiative that changes how self-employed individuals, sole traders, businesses and landlords keep records and report income tax. Under MTD for Income Tax, digital records must be kept and quarterly updates submitted to HMRC, rather than relying on a single annual return.

Making Tax Digital is already in place for VAT and is now being rolled out for Income Tax. From April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and submit quarterly updates to HMRC.

The threshold reduces to £30,000 from April 2027 and £20,000 from April 2028. Further phases, including MTD for partnerships, are expected but have not yet been confirmed.

Making Tax Digital requires businesses, sole traders and landlords to move from annual, paper‑based reporting to digital record‑keeping and regular submissions to HMRC.

In practice, this means using compatible software, maintaining digital links between records and submissions, and moving away from a single year‑end deadline to a more consistent, year‑round approach with quarterly updates.

For accounting practices supporting clients, this increases submission volumes, requires closer management of deadlines, and involves more frequent client interaction.

 Yes. You can continue using spreadsheets as long as the data is submitted digitally using compatible software such as TaxCalc MTD Quarterly Filer.

Yes. TaxCalc offers two versions of MTD Quarterly Filer.

Accountancy practices use the accountant version to manage and submit quarterly updates on behalf of their clients.

Clients who prefer to submit their own updates can use TaxCalc’s version for individuals instead. Both support spreadsheet‑based records and HMRC‑recognised submissions.

TaxCalc provides Making Tax Digital solutions for individuals, including sole traders and landlords. MTD Quarterly Filer is an HMRC-recognised solution that allows users to submit quarterly updates directly to HMRC while continuing to work in spreadsheets. It guides users through the process step by step, supports multiple businesses and properties, and provides a tax estimate after each submission. This makes it a practical and accessible way to stay compliant with MTD requirements from April 2026 and beyond.

Making Tax Digital for accountants changes how work flows through your practice. The challenge is not just meeting new requirements, but managing the volume and consistency of work they create.

Increased submission volumes
Quarterly reporting significantly increases the number of deadlines across your client base. What was previously an annual process becomes a continuous cycle of submissions that must be completed accurately and on time.

Work concentrated around fixed deadlines
MTD submissions fall due at the same points throughout the year. This creates periods of concentrated workload, making it harder for teams to manage capacity and maintain consistent output.

Inconsistent client readiness
Not all clients will be prepared for digital record-keeping and many may not fully understand what is required of them. Some will rely on spreadsheets, while others may provide incomplete or late information, increasing the time required to prepare submissions.

Manual processes that do not scale
Tracking deadlines, chasing information and preparing submissions manually becomes increasingly difficult as volumes grow. Without structured processes, work becomes reactive rather than controlled.

Unclear service delivery and pricing
More frequent compliance work requires a clear approach to services and pricing. Without defined processes, it becomes harder to manage workload, maintain margins and deliver work consistently.

Making Tax Digital requires accountants to move clients from annual, paper-based reporting to digital record-keeping and regular submissions to HMRC. In practice, this means using compatible software, maintaining digital connections between records and submissions, and moving away from a  single deadline at the end of the year to the more frequent quarterly updates, followed by the new Final Declaration.


For accounting practices, this increases the volume of submissions, requires closer management of deadlines, and involves more frequent client interaction. It also means putting structured processes in place to ensure work is completed consistently and accurately across the client base.