Making Tax Digital for Self-Assessment: Everything You Need to Know
Making Tax Digital (MTD) is transforming the way individuals and businesses manage their tax obligations. From April 2026, MTD for Income Tax Self-Assessment will apply to self-employed individuals and landlords with income over £50,000, and from April 2027 it will extend to those earning above £30,000. At Blue Rocket Accounting, we’re here to help you prepare and ensure you’re fully compliant with MTD requirements.
Who does MTD for Self-Assessment apply to?
MTD affects a wide range of people, including:
- Self-employed sole traders with business income
- Landlords receiving rental income
- Partnerships (in later stages of the rollout)
If your income is below £30,000, you won’t need to sign up just yet, but adopting digital record-keeping early can still make managing your finances easier.
What do I need for MTD compliance?
To comply with MTD, you’ll need MTD compatible software to keep digital records and send quarterly updates directly to HMRC. Spreadsheets on their own will no longer be sufficient, but they can be linked to approved software if needed. At Blue Rocket Accounting, we recommend software tailored to your business size and sector to make the transition smooth.
How often will I need to file?
Instead of one annual Self-Assessment tax return, you’ll now submit:
- Quarterly updates (every three months)
- An End-of-Period Statement (EOPS)
- A Final Declaration confirming all information is correct
This means more regular reporting, but it also provides you with better visibility over your tax position throughout the year, helping to avoid last-minute surprises.
Will Making Tax Digital make things harder?
Many people worry MTD will add extra admin, but with the right software and support, it can actually make life easier. Benefits include:
- Reduced errors in tax returns
- Real-time insights into income and expenses
- Easier organisation of records
- Fewer shocks when it comes to tax bills
How Blue Rocket Accounting can help
We specialise in helping self-employed individuals, landlords, and small businesses get set up with the right MTD for Self-Assessment software. From choosing the best solution to ongoing support, we’ll make sure the process is stress-free, leaving you more time to focus on your business.
Get in touch with Blue Rocket Accounting today to start preparing for the digital future of tax.
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