Making Tax Digital
We are a long-established firm of Chartered Tax Advisers and qualified accountants and we work with individuals, sole-traders and small companies providing clear, expert and affordable advice and support on all reporting and compliance aspects of Making Tax Digial.
What does Making Tax Digital mean for you and what is required?
From April 2026, self-employed taxpayers and (or) landlords with a qualifying income in excess of £50,000 will be required to use Making Tax Digital. This figure reduces to £30,000 from April 2027 and is likely to reduce further from April 2028.
What is Making Tax Digital?
MTD is a new reporting regime from HMRC which required quarterly reporting of certain income in addition to the year-end Self-Assessment. It requires the use of software to digitally record financial records and to report to HMRC quarterly.
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Who must use MTD?
All taxpayers who have self-employment income and (or) landlords with rental income above a certain limit will be required to use Making Tax Digital. The initial limit is £50,000 from April 2026 and this reduces to £30,000 from April 2027.
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What is qualifying income?
Qualifying income is, braodly, the total of all self-employed income plus property income before the deduction of expenses. The qualifying income for 2024/2025 will be used for the April 2026 deadline and 2025/2026 will be used for the April 2027 deadline.
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When must MTD be use?
MTD will need to be used from April 2026 if qualifying income for the 2024/25 tax year was over £50,000 and will need to be used from April 2027 if qualifying income for the 2025/26 tax year was over £30,000.
"The team at Boxwood have managed my personal tax return preparation and filing since 2016 and I have found them really helpful and approachable. They are always available to answer any questions and I would have no hesitation is recommending them."
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Hans-Werner at
Deutsche-Hypo Bank
If you have any questions at all relating to Making Tax Digital then please do not hesitate to give one of the team a call.
What are some pitfalls to avoid?
Making Tax Digital requires the preparation and filing of quarterly reports with HMRC and will require the use of compliant software. Some planning will be required and and there are a number of pitfalls to watchout for.
Missing the deadline
The deadline is Apr 2026 where qualifying income exceeds £50,000 and April 2027 where qualifying income exceeds £30,000. This limit is likely to reduce for later tax years. Therefore, some care is required to ensure that the correct figures are used and the deadline is not missed.
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Selecting the wrong software
Compliant software will be required e.g. Xero or QuickBooks etc. to create, store and correct digital records of your self-employment and property income and expenses and also send your quarterly updates to HMRC. It will also need to be able to submit your tax return by 31 January the following year.
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Not planning ahead
Some planning will be required e.g. taxpayers must register for MTD and manual records will need to be moved to digital records. Quarterly filign deadlines should be diarised to ensure reports are filed on time.
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Incorrectly calculating qualifying income
Qualifying income is, braodly, the total of all self-employed income plus property income before the deduction of expenses. The qualifying income for 2024/2025 will be used for the April 2026 deadline and 2025/2026 will be used for the April 2027 deadline. Some care is required to ensure that this is correctly reported.
We offer a completely complimentary consultation. Why not give one of the team a call today to get answers to any questions you may have.
WHAT OUR CLIENTS SAY
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time.
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John at Bentley Consultancy Services Ltd
​"The team at Boxwood have managed my personal tax return preparation and filing since 2016 and I have found them really helpful and approachable. They are always available to answer any questions and I would have no hesitation is recommending them."
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Hans-Werner at
Deutsche-Hypo Bank
"The team at Boxwood have been our accountants since 2014 and have always been helpful and proactive. They help us with our VAT, payroll and year-end filings. They always remind us when there is an approaching deadline and we no longer have to worry about our accounting and tax."
Karen at Chomp
Creative Ltd
Why choose us?
Keeping on top of your accounting and complying with tax legislation can be overwhelming. Partnering with the right accountants and tax advisers will make a real difference; saving time, money and worry and allowing you to focus on growing your business with peace of mind.
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Chartered
Tax Advisers
We are fully regulated Chartered Tax Advisers & Accountants and provide expert advice & guidance
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Complimentary
Consultation
We provide a completely free initial consultation, allowing you time to chat through any questions you may have
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Competitive
Fixed Pricing
We operate on a fixed fee basis which is agreed in advance and there are absolutely no hidden costs
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Dedicated Accountant
All clients are assigned their own personal qualified accountant to ensure the highest level of service.