MTD FROM APRIL 2026

Under MTD for Income Tax, you will need to:

• Keep digital records of income and expenses using MTD-compatible software

• Submit four quarterly updates to HMRC each tax year

• Submit a Final Declaration after the tax year ends

This replaces the current single annual Self Assessment tax return, increasing submissions from one to five per year.

Most clients will follow HMRC’s standard tax-year quarters:

HMRC also allows reporting by calendar quarters (for example, 1 April – 30 June), with the same deadlines. Please let us know if you would prefer this option.

To prepare your quarterly submissions, we will need the following digitally:

• Income records (sole trader, rental, or mixed sources)

• Categorised expense records through your software

• Bank statements for the relevant period

• Details of any new asset purchases or disposals

• Notes explaining any unusual or one-off transactions

Final Declaration – Annual Information

Some information is reported annually rather than quarterly, including:

• Interest and dividend income

• Employment income (P60s)

• Pension contributions

• Loan interest

• Any other taxable income not included in the quarterly updates

HMRC requires all records to be maintained using MTD-compatible software.

We will support you with:

• Selecting suitable software

• Setting up your digital bookkeeping system

• Training on uploading transactions and categorising expenses

• Connecting your software securely to HMRC

Proper setup at the start helps reduce errors and avoids future compliance issues.

To use MTD, you must have an active GOV.UK / Government Gateway account. This allows you to:

• Access your digital tax account

• Approve software connections

• Authorise us to act on your behalf

If you already have a login, please make sure you know your username and password.

If you need to create one, visit:
👉 https://www.gov.uk/log-in-register-hmrc-online-services

You may need documents such as a passport or driving licence, a recent payslip or P60, and address details for identity verification.
We strongly recommend completing this step as early as possible.

Before we can act for you under MTD, HMRC requires digital authorisation.

The process is straightforward:

1. We send you a secure HMRC authorisation link

2. You log in using your GOV.UK details

3. You approve us as your MTD agent

4. HMRC confirms the authorisation

Without this approval, we cannot submit returns, access your records, or complete your Final Declaration.

MTD compliance is significantly easier when you have:

• A separate business bank account

• Bank feeds linked directly to your accounting software

This reduces errors, saves time, and simplifies quarterly reporting.

Previously, you were charged a single annual fee for one tax return.
Under MTD, this now includes:

• Four quarterly submissions

• One annual Final Declaration

• Ongoing digital record review and support

• Software setup and training

• Increased contact and compliance monitoring

We will review our fees to reflect this additional work. Please be assured:

• Our pricing will remain transparent and competitive

• Any increase will reflect only the additional workload

• You will be informed of revised fees before April 2026

A full review will be carried out once we’ve discussed your record-keeping method and how you’ll provide information monthly or quarterly.

Please:

• Confirm that you would like us to manage your MTD obligations

• Ensure you have an active GOV.UK login

• Complete the HMRC authorisation link when received

• Prepare to keep digital records from 6 April 2026

• Tell us how you currently keep records (software, spreadsheets, paper)

• Consider opening a separate business bank account if you don’t already have one