⭐ MTD FAQ SECTION

Frequently Asked Questions — Making Tax Digital (MTD)

1. What is Making Tax Digital (MTD)?

MTD is an HMRC initiative requiring individuals and businesses to keep digital records and submit tax information using MTD-compatible software.

2. Who needs to follow MTD for Income Tax (ITSA)?

From 6 April 2026, landlords and self-employed individuals earning over £50,000 must comply. From April 2027, the threshold reduces to £30,000.

3. What does MTD mean for landlords with multiple properties?

You must keep digital income and expense records for each property. Quarterly updates must contain property-level information.

4. What software do I need for MTD?

You must use HMRC-recognised MTD software such as:

• QuickBooks

• Xero

• FreeAgent

• Sage

• MTD bridging software

We can set this up for you.

5. Do spreadsheets still work under MTD?

Yes — but only if used with MTD-compatible bridging software. Most landlords prefer full accounting software for accuracy.

6. What are MTD quarterly updates?

These are digital submissions you must send to HMRC every 3 months, summarising your income and expenses.

7. Do I still need to do a Self Assessment tax return?

Not in the traditional way. Under MTD, you must submit:

• Quarterly updates

• An End of Period Statement (EOPS)

• A Final Declaration. This replaces the old Self Assessment process.

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8. What if I don’t comply with MTD?

HMRC will introduce penalties for late submissions and inaccurate digital records, similar to VAT late penalties.

9. Can Sam Niranjan & Co. handle everything for me?

Yes — we offer a fully managed MTD service, including software setup, quarterly submissions, and year-end declarations.