Making Tax Digital Help for UK Sole Traders and Landlords

Get MTD-ready with clear, practical support from a UK accountant.

Aurestone helps sole traders and landlords check when MTD applies, set up compatible software, keep digital records, submit quarterly updates and complete the annual tax return—without a last-minute scramble.

Book Your Free MTD-Readiness ReviewMessage on WhatsAppCheck If MTD Applies to You

MTD for Income Tax, explained

What Making Tax Digital means for sole traders and landlords

Making Tax Digital for Income Tax requires qualifying sole traders and landlords to create and keep digital records, send cumulative quarterly summaries to HMRC, and submit their annual tax return through compatible software. The rules change how you keep and report records; they do not create four extra tax bills.

Who needs to prepare

MTD for Income Tax is being introduced in three stages

Qualifying income normally means your combined gross self-employment and property income before expenses.

Qualifying incomeHMRC checksMTD start date
More than £50,0002024–25 Self Assessment return6 April 2026
More than £30,0002025–26 Self Assessment return6 April 2027
More than £20,0002026–27 Self Assessment return6 April 2028

Rules and thresholds can change. See the current HMRC MTD for Income Tax guidance.

Who this is for

Built around the sole traders MTD is actually rolling out to.

  • Sole traders and self-employed professionals with gross income over £50,000, in scope from April 2026
  • Sole traders approaching £30,000 gross income who need to be ready for April 2027
  • Sole traders and landlords approaching £20,000 qualifying income who need to prepare for April 2028
  • Landlords with property income who fall under the same Making Tax Digital for Income Tax rules
  • Anyone still relying on spreadsheets or paper records who needs to move to compliant software
  • Business owners who want to get ahead of MTD now rather than scramble later

The problems we see most

The same MTD questions come up again and again.

  • Genuine confusion about whether MTD applies yet, and from exactly what date
  • No MTD-compatible software in place, still relying on spreadsheets or a shoebox of receipts
  • Uncertainty about what quarterly updates actually involve and how much extra work it creates
  • Worry about switching systems mid-year and getting the transition wrong

MTD Support Packages

Choose how much of the MTD process you want us to handle

Every package starts with a free readiness review. You receive a fixed quote before any paid work begins.

MTD Setup

For people who want to manage their own records after a clean start.

  • MTD threshold and readiness check
  • Compatible software recommendation and setup
  • HMRC connection and authorisation support
  • Digital bookkeeping workflow and training
Get My Fixed MTD Quote

MTD Quarterly

For sole traders and landlords who want ongoing quarterly compliance support.

  • Everything in MTD Setup
  • Quarterly bookkeeping review
  • Quarterly update preparation and submission
  • Deadline reminders and direct accountant support
Get My Fixed MTD Quote

MTD Complete

For people who want Aurestone to manage the full MTD cycle.

  • Digital bookkeeping support throughout the year
  • All quarterly updates
  • Year-end adjustments and annual tax return
  • Tax planning and payment guidance
Get My Fixed MTD Quote

Tailored MTD Support

Accounting built for the real challenges Making Tax Digital creates.

MTD Threshold Monitoring

We track your qualifying income against the £50,000 (April 2026) and £30,000 (April 2027) thresholds, so you know exactly when MTD applies to you instead of guessing.

Compliant Software Setup

We set you up on HMRC-recognised MTD software, suited to how your business actually works rather than an over-complicated system you'll never use.

Quarterly Update Filing

We prepare and submit your quarterly digital updates to HMRC on time, every time, so MTD becomes routine rather than a recurring fire drill.

Digital Record-Keeping Habits

We help you build a simple, sustainable way of capturing income and expenses digitally throughout the year, not just when a deadline is looming.

Annual Tax Return Finalisation

After the fourth update, we check the year-end figures, make the required adjustments, include other taxable income and reliefs, and submit your annual tax return through compatible software.

Direct Access to a Certified Accountant

No call centre queues or vague advice. Speak directly with a qualified UK accountant whenever you have a question about your MTD obligations.

Tax & MTD responsibilities

What HMRC expects from you under Making Tax Digital.

  • Check your qualifying income each year against the MTD thresholds — £50,000 from April 2026, £30,000 from April 2027, and £20,000 from April 2028
  • Keep digital records of business income and expenses using MTD-compatible software once you're in scope
  • Submit cumulative quarterly summaries of income and expenses to HMRC through compatible software
  • After the tax year, correct and finalise your business records, include other taxable income, and claim relevant reliefs and allowances
  • Submit your annual tax return through compatible software by the normal 31 January deadline
  • Keep paying Income Tax, Class 4 National Insurance, and Payments on Account as normal — MTD changes how you report, not what you owe

Practical experience

Cloud software is already how we work, not a new add-on.

Aurestone already runs clients on Xero and cloud accounting software as standard practice, not something bolted on for MTD. That existing groundwork in digital record-keeping and software setup means getting sole trader clients MTD-ready is a natural extension of how we already work, rather than a scramble to catch up once the deadline arrives.

We will check that the chosen product can create digital records, send quarterly updates and submit your annual tax return. You can also compare products using HMRC's recognised software finder.

MTD resource centre

One clear route through the Making Tax Digital rules.

Use the complete guide for the overall rules, then choose the deadline, records or software article that matches the question you need to solve.

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Making Tax Digital FAQs

MTD for Sole Traders — Common Questions

What is Making Tax Digital for Income Tax and does it affect me?

Making Tax Digital (MTD) for Income Tax requires self-employed people and landlords above certain income thresholds to keep digital records and report to HMRC quarterly instead of filing a single annual Self Assessment return. It affects you once your gross qualifying income passes the relevant threshold.

When do I need to comply with MTD for Income Tax?

From 6 April 2026 if your qualifying income is more than £50,000, from 6 April 2027 if it is more than £30,000, and from 6 April 2028 if it is more than £20,000. The relevant figure is normally taken from the Self Assessment return for the tax year two years before your MTD start date.

What software do I need for MTD?

You need HMRC-recognised MTD software to keep digital records and submit quarterly updates. We set you up on a system that fits your business, most commonly Xero, and make sure it's configured correctly from day one.

What happens to my Self Assessment return under MTD?

You keep digital records and send cumulative quarterly updates during the year. After the tax year, you use compatible software to correct and finalise the figures, include other taxable income, make claims and adjustments, and submit your annual tax return by the usual deadline.

Will my tax bill change under MTD?

No. MTD changes how and how often you report to HMRC, not the underlying rules for what Income Tax, Class 4 National Insurance, or Payments on Account you owe.

I'm not in scope yet — should I do anything now?

It helps to move to digital record-keeping before you're legally required to, so the transition isn't rushed. We can get your software and habits in place well ahead of your MTD start date.

Is the MTD threshold based on income or profit?

It is based on qualifying gross income before expenses, not profit. HMRC generally combines your gross self-employment and property income when deciding whether you are over the threshold.

Can I keep using spreadsheets for MTD?

Possibly. A spreadsheet can form part of an MTD-compatible system when it is digitally linked to software that can send the required updates and annual tax return. We will check whether keeping your spreadsheet is practical or whether accounting software would be simpler.

Does MTD apply to jointly owned rental property?

Your own share of qualifying property income can count towards your threshold. Joint landlords do not need to link their digital records to each other, but each person should check their own MTD position.

Are exemptions available?

Some people may be able to apply for an exemption, including where age, disability, remoteness or another reasonable circumstance makes it impractical to use digital tools. Exemption is not automatic, so your position should be checked with HMRC.

How much does Aurestone's MTD support cost?

Aurestone offers MTD Setup, MTD Quarterly and MTD Complete support. Your fixed quote depends on your record quality, transaction volume, software and number of self-employment or property income sources. The free MTD-readiness review identifies the right package before you commit.

Find out exactly what you need to do before MTD applies

In your free MTD-readiness review, we’ll confirm your likely start date, assess your records and software, and recommend the simplest route to compliance.

Book Your Free MTD-Readiness ReviewMessage on WhatsAppSpeak to an Accountant Today

Content reviewed against HMRC guidance: 27 July 2026.

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