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Making tax digital

Your Business, Digitally Compliant

Is Your Business Ready for MTD for Income Tax?

The UK tax system is undergoing its most significant transformation in decades. MTD for Income Tax, formally known as Making Tax Digital for Income Tax Self-Assessment (ITSA), is replacing the traditional annual Self-Assessment tax return with a mandatory digital reporting system. Starting 6 April 2026, sole traders and landlords will be required to maintain digital records and submit quarterly updates to HMRC throughout the year.

At CBM Accounting Ltd, we provide a fully managed MTD for Income Tax transition and filing service, handling your software setup, quarterly submissions, end-of-period statements, and final declaration so that the entire process is completely seamless, compliant, and stress-free.

Understanding HMRC MTD for Income Tax Changes

The HMRC MTD for Income Tax changes represent a major shift in how self-employed individuals and landlords report their income. The traditional once-a-year Self-Assessment process is being replaced with a fully digital reporting system.
What Will You Be Required to Do?
  • Maintain digital records of all business income and expenses
  • Submit four quarterly updates to HMRC throughout the tax year
  • File an End-of-Period Statement (EOPS) after the end of the tax year
  • Submit a Final Declaration by 31 January
Implementation Timeline
The changes will be introduced in phases based on your qualifying income:
  • From April 2026: Mandatory for sole traders and landlords with qualifying income over £50,000
  • From April 2027: Mandatory for those with qualifying income over £30,000
  • From April 2028: Mandatory for those with qualifying income over £20,000

Comprehensive MTD for Income Tax Services

Quarterly Digital Updates
  • Submission of all four HMRC quarterly updates
  • Real-time income and expense reporting
  • Reduced risk of January tax surprises.
  • Filing within HMRC deadlines.
MTD for Income Tax Software Setup
  • Setup of HMRC-recognised MTD software
  • Support with Xero and QuickBooks integration
  • Proper configuration for MTD compliance
  • Accurate digital transaction recording
End-of-Period Statement (EOPS)
  • Preparation of End-of-Period Statements (EOPS)
  • Coverage for all business income sources
  • Year-end adjustments and reconciliations
  • Capital allowances calculations
  • Accruals and final accounting entries
Final Declaration
  • Consolidation of all income sources
  • Inclusion of non-MTD income streams.
  • Coverage of bank interest and dividends.
  • Inclusion of PAYE employment income
  • Preparation and submission of Final Declaration
Penalty Protection & Filing Calendar Management
  • HMRC is introducing a points-based penalty system.
  • Late MTD submissions will accumulate penalty points.
  • Financial penalties apply once thresholds are reached
  • Management of your complete filing calendar.
  • Timely submission of all HMRC filings.

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MTD Filing Deadlines

Why choose us

The Real Benefits of Switching to MTD with CBM Accounting

Making Tax Digital isn’t just a compliance obligation — when managed correctly, it becomes a genuine business advantage. With quarterly reporting in place, you gain a structured, consistent view of your income and tax liability throughout the year, enabling smarter decisions around cash flow, investment, and tax planning.
Compliance

Fully compliant MTD for Income Tax software configuration and management

Software Integration

Xero MTD for Income Tax and QuickBooks integration available

Expert Guidance

Expert guidance on all HMRC MTD for Income Tax changes as they evolve.

Proactive Tax Planning

Proactive tax planning built into every quarterly review.

Frequently Asked Questions (FAQs)

1. Who needs to comply with Making Tax Digital?

MTD currently applies to VAT-registered businesses and is being expanded to include eligible self-employed individuals and landlords who meet the applicable income thresholds.

Yes. We assess your current accounting processes, recommend suitable MTD-compatible software, and ensure your business meets HMRC’s digital reporting requirements.

Yes. We can help transfer your financial records to compatible cloud accounting software, ensuring a smooth transition with minimal disruption to your business.

Failure to comply with MTD requirements may result in penalties, interest charges, or additional compliance issues with HMRC.

Our MTD services are suitable for sole traders, landlords, limited companies, partnerships, SMEs, and growing businesses that need assistance with digital tax compliance.

Yes. We prepare and submit your VAT returns through MTD-compatible software, ensuring accurate and timely submissions to HMRC.