Making Tax Digital for Income Tax, set up and handled for you
Making Tax Digital changes how sole traders and landlords report to HMRC. We check whether it applies to you, set up the right software, and file every quarterly update on time.
Does Making Tax Digital apply to you?
It depends on your qualifying income: your gross income from self-employment and property, before expenses.
| You must use MTD from | If your qualifying income was over | In the tax year |
|---|---|---|
| 6 April 2026 | £50,000 | 2024-25 |
| 6 April 2027 | £30,000 | 2025-26 |
| 6 April 2028 | £20,000 | 2026-27 |
The return you file by 31 January 2027 decides whether you start in April 2027. Because the test uses income before expenses, a landlord with £35,000 of rent and £15,000 of costs is still in scope.
What changes when you join
- Digital records. Your income and expenses must be kept in MTD-compatible software.
- Quarterly updates. You send HMRC a summary of your income and expenses four times a year.
- A tax return at the end of the year. You still file a return, after your fourth quarterly update.
Quarterly update deadlines
| Update period (standard) | Deadline |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
From the 2027-28 tax year, each late quarterly update earns a penalty point. Reach 4 points and HMRC charges a £200 penalty. Late tax returns earn points too.
What we do for you
We check if and when you start.
We look at your qualifying income and tell you your MTD start date, or confirm you are not yet in scope.
We set up your software.
Our accountants are Xero Certified Advisors and QuickBooks Certified ProAdvisors. We choose compatible software, set it up for your business or properties, and show you how to record what you need.
We file your quarterly updates.
We review your records each quarter and send the update to HMRC before the deadline.
We complete your year-end return.
After the fourth update, we make the year-end adjustments and file your tax return.
We handle joint and mixed income.
Landlords with jointly owned property, or people with both a business and rental income, get the right figures in each update.
Who we help
- Landlords with rents over the threshold (see our landlord service)
- Sole traders and freelancers
- People with both business and rental income, where the two are added together for the test
Why Penny Minders
Chartered accountants
qualified with the ICAEW and ICAS
Xero and QuickBooks certified
A dedicated accountant
and unlimited advice by phone and email
Fixed fees
agreed before we start
Frequently asked questions
Get ready before April 2027
Book a free consultation and our accountants will check your qualifying income, confirm your start date and set you up properly.
See your price