The way YOU Report Your INCOME TAX is changing!
With the first phase of Making Tax Digital (MTD) for Income Tax due to roll out in just a year, thousands of self-employed individuals and landlords are at risk of being left behind. Despite years of preparation time, a recent study by FreeAgent found that more than 1 in 5 affected taxpayers still don’t fully understand the changes and alarmingly, 1 in 10 haven’t even heard of MTD.
As trusted advisors, accountants have a pivotal role to play in ensuring their clients stay compliant and avoid the stress of last-minute changes. At Everett King, we’re not just here to crunch the numbers We’re here to provide clarity, confidence, and peace of mind.
What Is Making Tax Digital (MTD) for Income Tax?
MTD is HMRC’s initiative to modernise the UK tax system, making it more efficient, accurate, and easier for taxpayers to get their tax right.
The upcoming MTD for Income Tax Self-Assessment (ITSA) will require certain taxpayers to maintain digital records and submit quarterly updates to HMRC using compatible software.
Who Does This Affect?
You’ll need to comply with MTD for Income Tax if you are:
- A sole trader or landlord
- With Total Income over £50,000 per year (from April 2026)
- With Total Income over £30,000 per year (from April 2027)
Additional thresholds and partnership rules will follow at a later date.
What Will You Need to Do?
If MTD applies to you, you’ll be expected to:
- Maintain digital records of your income and expenses.
- Use HMRC-recognised MTD software (e.g., QuickBooks and Xero Everett King supply at discount).
- Submit quarterly income and expense updates to HMRC. (Everett King help to reconcile is right).
- Complete a Final (Fifth) Declaration each year (replacing your traditional Self-Assessment return).
Be Proactive With Your Record-Keeping
One of the most significant shifts under MTD for Income Tax Self Assessment (ITSA) is the introduction of quarterly reporting to HMRC — due every:
- 7th August
- 7th November
- 7th February
- 7th May
This will be a considerable change for many business owners and landlords who traditionally left their Self Assessment until the deadline. At Everett King, we’re helping clients move away from reactive, last-minute accounting and towards a more proactive and efficient digital workflow that supports business growth.
By implementing MTD-compliant accounting software, you can automate much of the process. Apps provided with leading platforms allow you to scan receipts, track expenses in real-time, and generate filings automatically. As your accountants, Everett King can help you choose and configure the right tools to meet your business’s needs.
Here’s how to stay on top of things — and how Everett King can support you at every step:
- Diarise Key Dates: Add all MTD deadlines to your calendar and set reminders.
- Log As You Go: Don’t wait until the quarter ends — update your income and expenses regularly.
- Reconcile Often: Match your bank statements with your records frequently to catch discrepancies early.
- Organise Your Documents: Digital backups are essential, but keep physical copies safely filed too.
- Review Regularly: Regular checks help ensure your records are accurate and that you’re not missing out on any allowable deductions.
As with any new process, quarterly submissions may feel daunting at first. With Everett King and our systems in place, these unknown habits, will become second nature.
Need help setting up your MTD record-keeping system?
Book your free consultation with an Everett King specialist today. We’ll help you stay compliant, stay organised, and stay ahead.
Why This Matters to You?
Many small business owners and landlords are still unsure where to begin with Making Tax Digital, let alone how to manage digital records or submit quarterly updates.
Whether you’re self-employed, run a limited company, or manage multiple properties, the new requirements will directly impact how you handle your finances. The sooner you adapt, the smoother the transition will be — and the less risk of non-compliance.
At Everett King, we’ve already supported dozens of clients by helping them:
- Digitise their record-keeping with HMRC-compliant accounting software
- Understand their new obligations and key submission deadlines
- Avoid penalties and last-minute stress
- Streamline their tax and cash flow processes with real-time reporting tools
What Should You Do Next?
Everett King trained staff on your call or email will set up your MTD-ready software, or ongoing digital bookkeeping and compliance support.
Want to do it alone? Visit the official GOV.UK guidance to learn more or sign up voluntarily but pass by Everett King first is the right software.
Preparation for Self-Assessment, Personal Details & Tax Questionnaires
Look out for Everett King emailing you these to you they will be sent out soon for us to help you get started with the upcoming tax year and prepare for MTD readiness so you know the amount of tax to pay early – allowing you time to put the money aside and avoid late payment fines.
Don’t wait until the deadline is upon you. We are here to support and help you.
With Everett King by your side the switch to digital tax reporting is painless, simple, and stress-free. We also include a free tax-deductible review.