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.
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.
