Making Tax Digital (MTD) in simple terms: who will it affect and what to prepare for?
🔍 Making Tax Digital (MTD) in simple terms: who will it affect and what to prepare for?
The UK is changing the rules of the game:
From 2026, everyone earning from self-employment or rental property must switch to the digital tax system – Making Tax Digital (MTD).
But what is it? Who does it concern? And why should you pay attention now, even if you’re not “tech-savvy”?
🤖 What is MTD – in simple words
MTD (Making Tax Digital) is a UK tax authority (HMRC) program that requires taxpayers to:
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Keep income and expenses records in digital format;
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Use HMRC-approved software (not Excel or paper);
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Submit quarterly reports to HMRC online.
📌 Who falls under MTD?
It concerns you if you are:
✅ Self-employed
✅ A landlord renting property
✅ Combining both income sources
And your total income is:
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£50,000+ per year → mandatory from April 2026;
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Over £30,000 → mandatory from April 2027.
💡 Digital software – what is it?
It’s not just an app. It’s officially HMRC-approved software that automatically:
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Keeps your bookkeeping;
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Generates tax reports;
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Sends data to HMRC – no manual returns.
Examples: QuickBooks, Xero, FreeAgent, Sage, even simple mobile apps.
But there’s a problem…
😓 Why can MTD be difficult?
For many, it’s a new stress.
You may struggle with digital software if:
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You’re not confident with computers or phones;
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You’re elderly or disabled;
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You lack stable internet access;
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Your religious beliefs restrict technology use.
🛡 You have the right to exemption!
Good news: HMRC allows an official exemption application if:
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It’s physically or mentally unmanageable;
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You can’t meet technical requirements;
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Or you’re simply not confident with technology and afraid of mistakes.
📨 Applications can be submitted online (or by post) – and you can get official exemption.
🧠 Who should pay attention now?
👨🔧 Self-employed (builders, electricians, drivers, tutors)
🏠 Landlords (renting out one or more properties)
🧓 Elderly people used to filing manually
🧕 Those with beliefs limiting tech use
👨👩👦 People without stable internet or with health issues
✅ What can you do today?
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Check if you fall under MTD from 2026 or 2027;
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Assess if you can handle digital requirements;
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Apply for exemption if it’s difficult;
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Or choose simple software if you want to try.
📣 Don’t wait! Start preparing in advance
Take action while there’s still time:
📝 We will help you:
✔ Identify if you fall under MTD.
✔ Understand digital accounting with the right software.
✔ Prepare an exemption application if transition is impossible.
📣 Don’t delay – act today!
📬 Book a free consultation now, and we’ll review your case, give recommendations, and help avoid mistakes with HMRC.
