Making Tax Digital (MTD) Services for Self-Employed, Sole Traders and Landlords

Making Tax Digital (MTD) is changing how self-employed individuals, sole traders and landlords report income to HMRC. Instead of relying only on annual Self Assessment records, affected taxpayers will need to keep digital records, use compatible software and submit regular updates to HMRC.

At Audit Consulting Group, we provide professional Making Tax Digital services for self-employed people, freelancers, contractors, consultants, landlords and small business owners across the UK.

Our team helps you check whether MTD applies to you, choose suitable software, digitise your records, register correctly and manage quarterly submissions with confidence.

What Is Making Tax Digital?

Making Tax Digital is a UK Government programme designed to modernise tax reporting. It requires taxpayers within scope to keep records digitally and use compatible software to send information to HMRC.

MTD already applies to VAT-registered businesses. The next major stage is Making Tax Digital for Income Tax, also known as MTD for Income Tax Self Assessment.

Under MTD, affected self-employed individuals and landlords will need to:

• keep digital records;
• use HMRC-compatible software;
• submit quarterly updates;
• send a final declaration after the tax year;
• maintain accurate records throughout the year.

MTD for Self-Employed UK

Making Tax Digital for Income Tax will apply to sole traders and landlords in stages, based on qualifying income from self-employment and property.

According to HMRC, MTD for Income Tax starts:

• 6 April 2026 — for qualifying income over £50,000;
• 6 April 2027 — for qualifying income over £30,000;
• 6 April 2028 — for qualifying income over £20,000.

Qualifying income is generally your total income from self-employment and property before expenses, based on previous tax return information.

Who Needs Making Tax Digital Support?

MTD may affect individuals who receive income from self-employment, property or both.

Our MTD services are suitable for:

• sole traders;
• freelancers;
• contractors;
• consultants;
• landlords;
• online sellers;
• tradespeople;
• small business owners;
• individuals with both trading and rental income.

If your income is near the MTD threshold, it is important to prepare early rather than waiting until HMRC deadlines arrive.

What MTD Means in Practice

MTD is not just a software change. It changes how records are kept and how tax information is reported during the year.

Instead of preparing everything once annually, affected taxpayers will need a more organised digital process throughout the year.

This includes:

• recording income and expenses digitally;
• keeping business and property records up to date;
• submitting quarterly updates to HMRC;
• reviewing figures before submission;
• completing a final declaration after the tax year;
• maintaining evidence for expenses and income.

How We Help with MTD Setup and Compliance

Audit Consulting Group provides full Making Tax Digital setup and ongoing compliance support.

1. MTD Eligibility Assessment

We review your income sources, Self Assessment position and HMRC thresholds to confirm when MTD applies to you.

2. Software Selection

We help you choose suitable MTD-compatible software based on your business type, transaction volume and reporting needs.

3. Digital Record Migration

If you currently use paper records, spreadsheets or manual bookkeeping, we help move your records into a compliant digital format.

4. HMRC Registration

We support the registration process and help ensure your software is correctly authorised with HMRC.

5. Quarterly Updates

We help prepare and submit quarterly updates accurately and on time.

6. Final Declaration Support

After the tax year, we help complete the final declaration and ensure your income, expenses and tax position are reported correctly.

MTD Software for Self-Employed Individuals and Landlords

Choosing the right software is one of the most important parts of MTD preparation.

Common MTD-compatible software options include:

• Xero;
• QuickBooks;
• FreeAgent;
• Sage;
• HMRC-recognised bridging software.

The right choice depends on your income type, business structure, bookkeeping habits and whether you want to manage submissions yourself or use an accountant.

Can You Still Use Spreadsheets Under MTD?

Spreadsheets may still be used in some cases, but they must be connected to HMRC through compatible bridging software.

Manual records alone are not enough. MTD requires a digital record-keeping process and compliant submission method.

We help clients decide whether spreadsheets with bridging software are sufficient or whether full accounting software would be more practical.

Benefits of Preparing for MTD Early

Preparing early gives you time to set up systems properly and avoid last-minute stress.

Key benefits include:

• reduced risk of HMRC penalties;
• better control over income and expenses;
• fewer year-end surprises;
• more accurate tax planning;
• less paperwork;
• improved visibility of profit and cash flow;
• more organised records for accountants and HMRC.

MTD can become more than a compliance obligation. With the right setup, it can improve how you manage your finances throughout the year.

MTD Penalties and Compliance Risks

Failure to comply with Making Tax Digital requirements may result in penalties and increased HMRC scrutiny.

Common compliance risks include:

• missing quarterly submission deadlines;
• using non-compatible software;
• keeping incomplete digital records;
• submitting inaccurate updates;
• failing to register in time;
• poor separation between personal and business expenses.

Getting systems in place early helps reduce these risks before MTD becomes mandatory for your income level.

Real Client Results – MTD for Self-Employed UK

Case 1: Freelancer Transition to MTD

A freelance web developer earning £58,000 annually needed help preparing for MTD.

What we did:

• implemented MTD-compatible software;
• digitised 18 months of records;
• set up quarterly reporting.

Result:

• fully prepared before the deadline;
• saved 12 hours per month on bookkeeping;
• reduced late filing risk.

Case 2: Self-Employed Consultant MTD Setup

A consultant with £72,000 turnover was using spreadsheets and manual expense tracking.

What we did:

• migrated records to cloud accounting software;
• automated expense tracking;
• created a quarterly submission workflow.

Result:

• improved tax accuracy;
• identified £2,140 in additional allowable expenses;
• provided real-time profit visibility.

Case 3: Landlord Preparing for MTD

A landlord with £46,000 rental income needed to prepare for future MTD requirements.

What we did:

• implemented property income tracking;
• configured MTD-compatible software;
• organised rental expense records.

Result:

• MTD-ready record system;
• reduced admin time by 8 hours per quarter;
• clearer property income reporting.

Case 4: Sole Trader Digital Migration

A tradesperson with income above the MTD threshold was still using paper receipts and manual records.

What we did:

• digitised business records;
• set up MTD software;
• created a quarterly update process.

Result:

• reduced late filing risk;
• improved expense tracking;
• estimated tax efficiency improvement of £1,580.

Frequently Asked Questions – Making Tax Digital

What is MTD for self-employed people?

MTD for self-employed people is part of Making Tax Digital for Income Tax. It requires affected sole traders and landlords to keep digital records and submit quarterly updates to HMRC using compatible software.

When does MTD for self-employed individuals start?

MTD starts from 6 April 2026 for qualifying income over £50,000, from 6 April 2027 for qualifying income over £30,000, and from 6 April 2028 for qualifying income over £20,000.

Do sole traders need MTD?

Yes, sole traders will need to use MTD if their qualifying income from self-employment and property exceeds the relevant threshold.

Do landlords need MTD?

Yes, landlords with property income above the relevant qualifying income threshold will need to comply with MTD for Income Tax.

Do freelancers and contractors need MTD?

Yes, freelancers and contractors are included if their qualifying self-employed income exceeds the MTD threshold.

How often do I need to submit reports under MTD?

MTD requires quarterly updates during the tax year, followed by a final declaration after the year ends.

What software do I need for MTD?

You need HMRC-compatible software that can keep digital records and submit updates to HMRC. Examples include Xero, QuickBooks, FreeAgent, Sage and compatible bridging software.

Can I still use spreadsheets?

Yes, but only if they are connected to HMRC through compatible bridging software and your records remain digital and accurate.

Can Audit Consulting Group handle MTD for me?

Yes. We can manage MTD setup, software configuration, quarterly submissions, final declarations and ongoing compliance support.

How much does MTD support cost?

The cost depends on your income sources, record quality, software requirements and whether you need setup only or ongoing quarterly support.

Official HMRC Making Tax Digital Resources

For official guidance, you can review HMRC’s Making Tax Digital information:

• Using Making Tax Digital for Income Tax
• Check if you need to use Making Tax Digital for Income Tax

Our Making Tax Digital Services Include

• MTD eligibility assessment;
• software selection and setup;
• digital record migration;
• HMRC registration support;
• quarterly update submissions;
• final declaration support;
• ongoing bookkeeping and compliance advice.

Contact Audit Consulting Group

Audit Consulting Group – Accounting and Tax
Phone: +44 7386 212550
Email: info@auditconsultinggroup.co.uk

If you are self-employed, a sole trader, freelancer, contractor or landlord, our MTD specialists can help you prepare early, avoid compliance issues and manage digital tax reporting with confidence.

Making Tax Digital Services Cost in the UK

Estimate the cost of Making Tax Digital services in the UK with expert support. We help self-employed individuals, landlords and small businesses comply with MTD requirements using HMRC-compatible software and accurate digital records.