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Making Tax Digital (MTD) Services in London
HMRC’s Making Tax Digital for Income Tax is arriving in April 2026. If you earn rental or self-employment income above £50,000, MTD compliance is no longer optional. ABM Digital Accountants helps landlords and sole traders meet every requirement on time.
- MTD deadline: April 2026
- Quarterly reporting required
- HMRC-recognised software
- Expert accountant support
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What Is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is HMRC’s landmark initiative to replace annual Self Assessment returns with real-time, digital record-keeping and quarterly reporting. For landlords and sole traders, MTD for Income Tax marks a significant change in how property and self-employment income is tracked, declared and submitted to HMRC throughout the tax year.
Under MTD for IT, you will use HMRC-approved software to maintain digital financial records and send quarterly updates directly to HMRC. An End of Period Statement and a Final Declaration then replace your traditional tax return. The shift demands reliable bookkeeping habits and compatible software from day one of the new tax year.
MTD Deadlines and Income Thresholds Explained
The MTD timeline is phased by income level. From 6 April 2026, landlords and sole traders with qualifying income above £50,000 must comply. Those earning above £30,000 follow from 6 April 2027. HMRC has confirmed plans to lower the threshold further to £20,000, bringing even more individuals within MTD for Income Tax from April 2028.
Qualifying income includes rental income from UK or overseas property and self-employment turnover, assessed across the relevant tax year. Missing the MTD self-assessment start date will expose you to HMRC penalty points. Acting well before the MTD deadline gives you time to choose the right software, test your records and engage a qualified accountant.
How MTD Quarterly Reporting Works for Landlords
MTD quarterly reporting requires landlords to submit four income and expense updates per tax year, roughly every three months. Each quarterly report covers rental receipts and allowable expenses such as repairs, letting agent fees, insurance and finance costs. No tax payment is triggered at the quarterly stage, but accuracy is essential to avoid corrections later.
After the four quarterly updates, you submit an End of Period Statement confirming your figures for each income source. Finally, a Final Declaration captures all remaining income, reliefs and allowances to produce your total tax liability for the year. ABM Digital Accountants manages each of these steps for you, ensuring every MTD quarterly submission is filed correctly and on time.
Our MTD Services for Landlords
ABM Digital Accountants provides end-to-end MTD support tailored to landlords, sole traders and property investors navigating HMRC’s new digital tax requirements.
MTD Registration
We register you with HMRC for Making Tax Digital for Income Tax and authorise your chosen software on your behalf.
Software Setup
We configure HMRC-compatible software so your rental income and expenses are captured accurately from day one.
Quarterly Filing
We prepare and submit all four quarterly updates to HMRC, keeping you compliant throughout every tax year.
Records Review
We review your digital records each quarter to catch errors early and reduce your risk of HMRC enquiries.
End of Period Statement
We complete and submit your EOPS, confirming all property income figures before the Final Declaration.
Final Declaration
We handle your Final Declaration, optimising reliefs and allowances to minimise your overall Income Tax liability.
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WHO WE ARE
Our Work Process
Book online. We’ll provide you with a trusted, excellent services most accurate and fair-price service estimate.
Make an Appointment
Book an online appointment or drop a message of your business query with more details for our team.
Consult with Our Team
Our professional accounting consultants will analyze your needs and craft a personalized financial solution.
Enjoy Digital Services
We'll create an online account for you to communicate, upload docs and track your project's status.
Frequently Asked Questions (FAQs)
Making Tax Digital for Income Tax is an HMRC initiative requiring landlords and sole traders to keep digital records and submit quarterly income and expense updates instead of a single annual Self Assessment return.
Landlords with qualifying income above £50,000 must comply from 6 April 2026. The threshold drops to £30,000 from April 2027 and is expected to fall to £20,000 by April 2028.
Yes. Making Tax Digital for self-employed individuals follows the same income thresholds and timeline as landlords, covering self-employment turnover rather than rental receipts.
Qualifying income includes gross rental receipts from UK or overseas property plus self-employment turnover. Investment income such as dividends is generally excluded from the MTD calculation.
You submit four quarterly updates to HMRC each tax year. Each update covers income and expenses for that three-month period, with no immediate tax payment required at submission.
You need HMRC-recognised software that can maintain digital records and submit quarterly updates directly to HMRC. ABM Digital Accountants will recommend and configure the right solution for your situation.
HMRC operates a penalty points system for late MTD submissions. Accumulating enough points results in a financial penalty. Acting before the start date is the safest way to avoid any penalties.
Annual Self Assessment returns are replaced by a quarterly update process, an End of Period Statement per income source and a Final Declaration that calculates your total Income Tax liability for the year.
HMRC grants exemptions in limited circumstances such as digital exclusion, insolvency or religious objection. You must apply directly to HMRC and continue Self Assessment submissions until an exemption is confirmed.
We handle every stage of MTD compliance: registration, software setup, quarterly reporting, End of Period Statements and your Final Declaration, with fixed fees and dedicated support throughout the year.
Grow Smarter with ABM Chartered Accountants
We provide clear, dependable financial guidance for businesses of all sizes. Whether you need tax planning, payroll, or digital bookkeeping, our experts are here to help you every step of the way.
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