Making Tax Digital

The way you report tax is changing. With Making Tax Digital, HMRC is moving towards real-time reporting—and we make sure you stay fully compliant without the complexity.
From setup to submissions, Legacy Accounting takes care of everything—so you can focus on growing your business, not managing tax systems.

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Making Tax Digital: What It Means for You

Making Tax Digital is changing how you report tax to HMRC. Instead of a single annual return, you’ll need to keep digital records and submit updates throughout the year. For sole traders and landlords, this means adopting new systems and staying consistently organised.

At Legacy Accounting, we handle the entire transition—so you stay compliant without the stress.

  • Clear Digital Setup: We set up the right systems and software so your records are fully MTD-compliant from day one.
  • Ongoing Reporting Made Simple: Quarterly submissions are managed for you—accurately and on time.
  • End-to-End Support: From setup to year-end, we take care of everything so you can focus on your business.

Making Tax Digital: Phased Rollout & Thresholds

HMRC is introducing Making Tax Digital (MTD) for Income Tax in stages, based on your total annual income from self-employment and/or property. This phased approach allows individuals and businesses to gradually transition to digital reporting.

This is the first major stage of MTD for Income Tax.

  • Applies to individuals whose total gross income exceeds £50,000 in the 2024/25 tax year
  • Income is calculated as a combined total of all self-employment and property income (e.g. sole trade + rental income)
  • You must maintain separate digital records for each income stream (e.g. business and property reported individually)
  • Mandatory use of MTD-compatible software
  • Requirement to submit quarterly updates to HMRC
  • A final year-end declaration must also be completed

This phase will primarily affect higher-earning sole traders and landlords, requiring a shift from annual reporting to a more regular, digital process.

MTD will expand to include a wider group of taxpayers.

  • Applies to individuals whose total gross income exceeds over £30,000 in the 2025/26 tax year
  • Same requirements: digital records, quarterly submissions, and final declaration
  • Brings a larger number of small businesses and landlords into scope

This stage significantly increases the number of people required to comply, making early preparation essential.

The final stage will further extend MTD coverage.

  • Applies to individuals whose total gross income exceeds £20,000 in the 2026/27 tax year
  • Continued requirement for full digital record keeping and reporting
  • Represents a near-complete transition to digital tax reporting for most taxpayers

Making Tax Digital: Submission Deadlines & Reporting Schedule

Quarterly Updates (4 per year)

You’ll need to submit a summary of your income and expenses every quarter using MTD-compatible software:

> Q1 (6 April – 5 July) → Deadline: 7 August

> Q2 (6 July – 5 October) → Deadline: 7 November

> Q3 (6 October – 5 January) → Deadline: 7 February

> Q4 (6 January – 5 April) → Deadline: 7 May

Final Declaration

The final step is to confirm your overall tax position.

> Includes all sources of income (e.g. employment, dividends, property)

> Confirms your total tax liability for the year

> Replaces the traditional Self Assessment tax return

> Deadline: 31 January following the end of the tax year

Who Needs to Follow Making Tax Digital?

Making Tax Digital is being introduced in stages, starting with individuals who earn above specific thresholds.

From April 2026, it will apply to those with higher levels of self-employed or rental income, with further expansion planned in the following years.

Even if you’re not required to comply yet, preparing early can give you a significant advantage—helping you build better systems, reduce admin time, and avoid last-minute changes later on.

If you’re unsure where you stand, we’ll review your situation and give you a clear answer.

Flexible MTD Support Packages

We believe compliance shouldn’t feel complicated—or overpriced.

Our MTD services are designed to adapt to your business, whether you need full support or help with specific areas like bookkeeping or software.

You’ll benefit from:

  • Clear and transparent pricing

  • Tailored support based on your needs

  • Scalable services as your business grows

Every client is different, so we provide personalised quotes to ensure you only pay for what you actually need.

Frequently Asked Questions

In most cases, yes. MTD requires digital systems, but we handle the transition for you so it’s smooth and hassle-free.

It requires you to keep digital records of your income and expenses and submit updates to HMRC using approved software instead of relying on a single annual return.

Absolutely. We can take care of your entire MTD process—from setup to submissions—so you don’t have to worry about compliance.

This depends on your income level and HMRC thresholds. We can assess your situation and confirm exactly when it applies to you.

You could face penalties or increased scrutiny from HMRC. Staying compliant early helps you avoid unnecessary issues.

Not with the right support. Our goal is to reduce your workload by handling the technical and reporting side for you.

No—MTD also applies to landlords and self-employed individuals depending on their income levels.

We deliver expertise you can trust.

We’re here to make managing your finances simple and stress-free, so you can focus on your business with peace of mind. Whether you’re a small business owner, run a limited company, or are self-employed, we have the experience you can count on.

Extensive Expertise from Our Accountants

Our team of UK accountants has years of experience, providing income tax advice and taxation services that simplify complex financial tasks and reduce paperwork. We help keep your business finances organized, giving you the freedom to focus on growth.

Personalised Service

At Legacy Accountants, we put your needs first. We offer tailored solutions, ensuring accuracy and clarity in everything we do, so you can run your business with confidence.

Dependable and Transparent

We pride ourselves on clear communication. We’ll keep you informed throughout the process, providing dependable guidance so you can make the best financial decisions for your business.

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Accounting Solutions for every business need.

Accounting Software

Seamless setup and integration of leading accounting software, tailored to your business for improved efficiency and financial control.

VAT Returns

Expert VAT services to ensure timely, accurate filing, minimising overpayments and helping businesses stay compliant with current tax regulations.

Tax Returns

Simplified tax filing for self-employed individuals and small businesses, maximising savings with expert guidance on deductions and compliance.

Bookkeeping

Professional bookkeeping to keep your financial records organised, accurate, and up-to-date, ensuring smooth operations and simplified financial reporting.

Payroll Services

Efficient, accurate payroll management for limited companies, ensuring employees are paid on time while meeting all payroll compliance and reporting requirements.

Making Tax Digital

End-to-end support to help you transition into Making Tax Digital with ease. We ensure your records, systems, and submissions are fully compliant—so you avoid penalties and stay in control of your finances.

Need a personalised solution?

Every business is unique. Reach out today, and let’s craft a customised accounting approach that aligns perfectly with your financial goals.

Trusted by Businesses Like Yours.

Our Pricing Structure.

Self Assessment Tax Filing

From £20

per month

What’s Included

Get in touch today to explore solutions tailored to your profession, whether you’re a Sole Trader, Taxi Driver, Property Investor, Company Director, or more. We pride ourselves on providing competitive, clear pricing and expert service.

Making Tax Digital (MTD)

From £30 + VAT

per month

What’s Included

Everything you need to stay fully compliant with Making Tax Digital—handled by our expert team from start to finish.

Digital setup and onboarding

Quarterly reporting to HMRC

Full year-end finalisation

Dedicated support and guidance

Continuous compliance monitoring

LTD Company Accounts

From £42

per month

What’s Included

Get in touch today to explore solutions tailored to your startup or Ltd company. We pride ourselves on offering competitive, transparent pricing and expert service to support your business growth.

Growth

£360

per month

What’s Included

Everything from Starter package and following

Monthly Payroll Processing Up To 10 Staff / Directors

Assistance With Gaining Funding/Borrowing

VAT Returns

Receipt Scanning Self Assessment Filing Up To 2 Directors (Additional Director £30 Per Month)

Credit Control Assistance – Debt Chasing (Inc Passing On To A Collecting Agency)

Document Storage

Virtual CFO

£1000

per month

What’s Included

Everything from Growth package and following

Monthly Payroll Processing Up To 20 Staff / Directors

Document Storage/ Receipt Scanning

Outsourced FD Service, Quarterly Meetings

Monthly Management Accounts

Monthly Bookkeeping Auditing

We Use the Technologies You Use.

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