{"id":10039,"date":"2026-07-30T12:09:15","date_gmt":"2026-07-30T11:09:15","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=10039"},"modified":"2026-08-03T09:45:38","modified_gmt":"2026-08-03T08:45:38","slug":"mtd-for-income-tax-complete-guide","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-complete-guide\/","title":{"rendered":"Making Tax Digital for Income Tax explained (free guide)"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tMaking Tax Digital for Income Tax explained (free guide)\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tDiscover everything you need to know about MTD for Income Tax\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-30T12:09:15+01:00\">30 July, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Making Tax Digital for Income Tax explained (free guide)\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-complete-guide\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/ameliadunn\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/ameliadunn-350x350.jpg\" class=\"entry-author__image\" alt=\"Amelia Dunn\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/ameliadunn-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/10\/ameliadunn.jpg 600w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Amelia Dunn<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Making Tax Digital for Income Tax (MTD) is transforming the way millions of people handle their taxes. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not just about going paperless. It\u2019s a completely new approach to how tax data is recorded, shared, and submitted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article takes a look at <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-sole-traders\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital (MTD) for Income Tax<\/a> and tries to answer your pressing questions on how it impacts the way you run your business.<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained is-style-jade\"><div class=\"sage-container__inner\">\n<h2 id=\"h-key-takeaways\" class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>MTD for Income Tax replaces the Self Assessment return<\/strong> for sole traders and landlords whose qualifying income is above \u00a350,000 (2026), \u00a330,000 (2027), or \u00a320,000 (2028).<\/li>\n\n\n\n<li><strong>Qualifying income is gross income from self-employment and\/or property, before expenses<\/strong> \u2014 not your net profit.<\/li>\n\n\n\n<li><strong>You&#8217;ll submit quarterly updates at least every three months<\/strong>, plus one digital tax return by 31 January each year, through MTD-compatible software.<\/li>\n\n\n\n<li><strong>MTD doesn&#8217;t change how much tax you pay or when<\/strong> \u2014 payment deadlines (31 January, and 31 July if paying on account) stay the same.<\/li>\n\n\n\n<li><strong>A handful of automatic exemptions exist<\/strong> \u2014 including foster carers and those acting under power of attorney \u2014 but most people above the threshold cannot opt out.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s what this article discusses:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-background-on-making-tax-digital\" data-level=\"2\">Background on Making Tax Digital<\/a><\/li><li><a href=\"#h-mtd-for-income-tax-thresholds\" data-level=\"2\">MTD for Income Tax thresholds<\/a><\/li><li><a href=\"#h-1-what-is-making-tax-digital-for-income-tax-in-a-nutshell\" data-level=\"2\">1. What is Making Tax Digital for Income Tax in a nutshell?<\/a><\/li><li><a href=\"#h-2-who-does-mtd-for-income-tax-affect\" data-level=\"2\">2. Who does MTD for Income Tax affect?<\/a><\/li><li><a href=\"#h-3-what-are-mtd-for-income-tax-quarterly-updates\" data-level=\"2\">3. What are MTD for Income Tax quarterly updates?<\/a><\/li><li><a href=\"#h-4-what-is-the-mtd-for-income-tax-digital-tax-return\" data-level=\"2\">4. What is the MTD for Income Tax digital tax return?<\/a><\/li><li><a href=\"#h-5-can-my-accountant-or-bookkeeper-create-quarterly-updates-and-the-tax-return-for-me-as-part-of-making-tax-digital\" data-level=\"2\">5. Can my accountant or bookkeeper create quarterly updates and the tax return for me as part of Making Tax Digital?<\/a><\/li><li><a href=\"#h-6-when-do-i-pay-my-tax-and-national-insurance-contributions-under-mtd-for-income-tax\" data-level=\"2\">6. When do I pay my tax and National Insurance contributions under MTD for Income Tax?<\/a><\/li><li><a href=\"#h-7-how-do-i-sign-up-for-mtd-for-income-tax\" data-level=\"2\">7. How do I sign up for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-8-is-self-assessment-ending-because-of-mtd-for-income-tax\" data-level=\"2\">8. Is Self Assessment ending because of MTD for Income Tax?<\/a><\/li><li><a href=\"#h-9-is-there-free-software-for-mtd-for-income-tax\" data-level=\"2\">9. Is there free software for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-10-can-i-use-spreadsheets-for-mtd-for-income-tax\" data-level=\"2\">10. Can I use spreadsheets for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-11-how-long-do-i-have-to-keep-my-old-accounting-records-as-part-of-mtd-for-income-tax\" data-level=\"2\">11. How long do I have to keep my old accounting records as part of MTD for Income Tax?<\/a><\/li><li><a href=\"#h-12-where-can-i-learn-more-about-mtd-for-income-tax\" data-level=\"2\">12. Where can I learn more about MTD for Income Tax?<\/a><\/li><li><a href=\"#h-13-what-s-the-latest-on-mtd-for-income-tax-from-hmrc\" data-level=\"2\">13. What&rsquo;s the latest on MTD for Income Tax from HMRC?<\/a><\/li><li><a href=\"#h-final-thoughts-on-mtd-for-income-tax\" data-level=\"2\">Final thoughts on MTD for Income Tax<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-background-on-making-tax-digital\" class=\"wp-block-heading\">Background on Making Tax Digital<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Discover the latest on MTD for Income Tax and how best to prepare for the upcoming deadline from HMRC\u2019s Director of MTD, Craig Ogilvie in Sage\u2019s exclusive interview at Accountex North:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"video-container-wrap -mode-full\"><div class=\"video-container\"><video\n\t\t\t\tclass=\"sage-video video-js vjs-default-skin \"\n\t\t\t\twidth=\"640\"\n\t\t\t\theight=\"360\"\n\t\t\t\tdata-setup='{ \"controls\": true, \"aspectRatio\" : \"16:9\", \"poster\": \"https:\/\/img.youtube.com\/vi\/MIOsrxtlg88\/maxresdefault.jpg\", \"techOrder\": [\"youtube\"], \"enablejsapi\": 1, \"origin\": \"https:\/\/www.sage.com\", \"sources\": [{ \"type\": \"video\/youtube\", \"src\": \"https:\/\/www.youtube.com\/watch?v=MIOsrxtlg88\"}], \"youtube\": { \"ytControls\": 0, \"cc_load_policy\": 3, \"modestbranding\": 1, \"hl\": \"en_GB\", \"playsinline\": 1 } }'\n\t\t\t\tcrossorigin=\"\"><\/video><\/div><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As the name suggests, MTD for Income Tax is all about going digital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means, for those in scope, there\u2019s a legal <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">requirement to use software<\/a> to keep digital accounting records and send updates to HMRC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means no more messy spreadsheets or piles of paperwork.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, your tax data flows smoothly between businesses, accountants, bookkeepers, and HMRC in quarterly submissions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But this isn\u2019t just a box-ticking exercise. MTD for Income Tax marks a real shift in how tax works. You\u2019ll be able to see throughout the year how much tax you owe, helping you plan ahead and stay in control of your cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are some productivity gains from MTD for Income Tax, but the real benefit lies in cutting the time, stress, and complexity of your annual Self Assessment return through new quarterly submissions throughout the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to these submissions, accounting software can significantly reduce or even remove the admin burden. This should then free your time to do more of what you love within your business.<\/p>\n\n\n\n<h2 id=\"h-mtd-for-income-tax-thresholds\" class=\"wp-block-heading\">MTD for Income Tax thresholds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first wave of <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\">Making Tax Digital<\/a> became law back in 2019 when MTD for VAT was introduced. This was later expanded out to more businesses in 2022.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to MTD for Income Tax, the threshold for income drops each year, affecting millions more sole traders and landlords:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2026: Sole traders and landlords with a gross qualifying income of over \u00a350,000.<\/li>\n\n\n\n<li>2027: Sole traders and landlords with a gross qualifying income of over \u00a330,000.<\/li>\n\n\n\n<li>2028: Sole traders and landlords with a gross qualifying income of over \u00a320,000.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Qualifying income is simply your gross income from self-employment and\/or property (before expenses and taxes, in both cases). It is not your net income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Want some extra background? <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/?utm_source=otherDisplay&amp;utm_medium=display&amp;utm_campaign=PeterJones&amp;utm_term=OfflineMedia&amp;utm_content=TVandRadio\">Read more about what MTD for Income Tax means for you.<\/a><\/p>\n\n\n\n<h2 id=\"h-1-what-is-making-tax-digital-for-income-tax-in-a-nutshell\" class=\"wp-block-heading\">1. What is Making Tax Digital for Income Tax in a nutshell?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax\u2019s requirements replace the need for a Self Assessment return and affects sole traders and landlords who currently use the Self Assessment income tax system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For each sole trader business, and for total rental income, you must submit updates to HMRC every three months. Foreign property income also requires its own separate updates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Everyone must also submit a digital tax return by 31 January following the end of the tax year in the previous April, using their accounting software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s look at this in more detail.<\/p>\n\n\n\n<h2 id=\"h-2-who-does-mtd-for-income-tax-affect\" class=\"wp-block-heading\">2. Who does MTD for Income Tax affect?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax affects any of the following individuals who currently use the Self Assessment system and whose qualifying income is higher than the threshold. This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sole traders.<\/li>\n\n\n\n<li>Landlords \u2014 see the dedicated <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-landlords-need-to-know\/\">Making Tax Digital for Income Tax for landlords<\/a> guide for scenario-by-scenario detail \u2014 receiving rental income (including furnished holiday lettings, and foreign property).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The thresholds apply to an individual\u2019s total income, not to individual businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If an individual is both a sole trader and a landlord, income from both is added to see if they cross the threshold.<\/li>\n\n\n\n<li>If an individual owns several sole trader businesses, income for all businesses is added together.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t cross the threshold, you should continue to submit a Self Assessment tax return via the HMRC portal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New sole traders or landlords will use the Self Assessment system until HMRC instructs otherwise, or they can voluntarily sign up for MTD for Income Tax once they\u2019ve signed-up for Self Assessment.<\/p>\n\n\n\n<h2 id=\"h-3-what-are-mtd-for-income-tax-quarterly-updates\" class=\"wp-block-heading\">3. What are MTD for Income Tax quarterly updates?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Quarterly updates are a regular requirement of MTD for Income Tax. They help you understand your tax and National Insurance liability across the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rules are simple.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At least every three months, you must submit updates about your business income and expenses to HMRC using MTD-compatible software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Landlords need to submit these updates for their rental income but only one is required, regardless of how many properties are owned and from which rent is collected. Foreign property requires its own updates, however.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Four updates each tax year is a minimum. You can submit more if you think it will assist your accounting, and that\u2019s a great idea because you get superb insight into your cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s look at an example of a business that earns more than \u00a350,000 gross qualifying income and what they would need to submit following updates for the 2026\/27 tax year:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>1st:<\/strong> Due by 7 August 2026 (covers 6 April 2026 \u2013 5 July 2026).<\/li>\n\n\n\n<li><strong>2nd<\/strong>: Due by 7 November 2026 (covers 6 July 2026 \u2013 5 October 2026).<\/li>\n\n\n\n<li><strong>3rd: <\/strong>Due by 7 February 2027 (covers 6 October 2026 \u2013 5 January 2027).<\/li>\n\n\n\n<li><strong>4th: <\/strong>Due by 7 May 2027 (covers 6 January 2027 \u2013 5 April 2027).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Some businesses can also use calendar update periods if their basis period ends 31 March, rather than 5 April. In other words, the first quarterly update for such a business would still be due by 7 August but would cover the period 1 April \u2013 30 June.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The updates will contain information about your accounting such as your income and allowable expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Errors in updates won\u2019t incur penalties immediately, but accuracy is strongly recommended and will be required in the subsequent quarterly update.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, accurate updates will mean HMRC is able to best estimate your tax and National Insurance liability, so you can be sure about cash flow and the amount of money that you\u2019re putting away to pay your eventual tax bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These updates might sound foreboding, but good accounting software will automate much of it for you. With the right solution, it\u2019s likely all you will have to do is review the information before tapping or clicking to submit it. If you have an accountant or bookkeeper, they can do this for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Updates need to be submitted in this way for each business you own, and for any property income. This could mean submitting several updates each quarter.<\/p>\n\n\n\n<h2 id=\"h-4-what-is-the-mtd-for-income-tax-digital-tax-return\" class=\"wp-block-heading\">4. What is the MTD for Income Tax digital tax return?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">By no later than 31 January following the end of the tax year (5 April), you need to sign a digital tax return, in a similar way to you might currently with Self Assessment. But this is done within the MTD-compatible software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This replaces the Self Assessment tax return, along with anything else you may have heard about, such as a Final Declaration or end of period statements (EOPS).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It means bringing together all the data including business and non-business income needed to finalise your tax position and reach your final tax liability. You (or your accountant) should also include any applicable reliefs and adjustments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As with Self Assessment, HMRC will then tell you via the MTD software how much tax and National Insurance you\u2019re liable for. You\u2019ll then need to digitally sign this because your accountant or bookkeeper cannot sign on your behalf.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The tax return applies to you as an individual, so you only need to submit one, regardless of whether your income comes from multiple sole trader businesses and\/or property rental. Its deadline is fixed each year on 31 January.<\/p>\n\n\n\n<h2 id=\"h-5-can-my-accountant-or-bookkeeper-create-quarterly-updates-and-the-tax-return-for-me-as-part-of-making-tax-digital\" class=\"wp-block-heading\">5. Can my accountant or bookkeeper create quarterly updates and the tax return for me as part of Making Tax Digital?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accountants and bookkeepers can prepare and submit both as well as submitting the quarterly updates on your behalf. But as with the current Self Assessment system, you will need to review and digitally sign the tax return within the MTD-compatible software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your accountant or bookkeeper can also sign you up to MTD for Income Tax, if you wish, rather than you doing so yourself. Discuss this with them ahead of time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You will need to make sure your accounting software is digitally linked to that of your accountant and\/or bookkeeper and let HMRC know when you sign up that your accountant will act on your behalf. Remember to speak to your accountant ahead of time to ensure this is the case.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can have both a bookkeeper and a separate accountant digitally linked to your MTD account and software.<\/p>\n\n\n\n<h2 id=\"h-6-when-do-i-pay-my-tax-and-national-insurance-contributions-under-mtd-for-income-tax\" class=\"wp-block-heading\">6. When do I pay my tax and National Insurance contributions under MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD doesn\u2019t change how you pay your taxes, or what you pay.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should pay any outstanding tax liability by 31 January following the end of the tax year on 5 April. You will know the amount due because of your tax return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you pay on account then a further payment will then be due by 31 July, just like with Self Assessment.<\/p>\n\n\n\n<h2 id=\"h-7-how-do-i-sign-up-for-mtd-for-income-tax\" class=\"wp-block-heading\">7. How do I sign up for MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC contacted people to tell them if they need to follow the MTD for Income Tax rules as of April 2026, based on their most recent tax return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check if you can sign up early and choose your desired software that works with Making Tax Digital for Income Tax. You must ensure you have MTD-compatible software in place and sign-in to your MTD for Income Tax account within the software. Speak to your software vendor if you have any questions. Following this, you can sign up <a href=\"https:\/\/www.gov.uk\/guidance\/use-making-tax-digital-for-income-tax\/signing-up\">via the HMRC website<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your accountant or bookkeeper might be able to sign you up to MTD for Income Tax, if you wish to avoid the task yourself. Speak to them ahead of time about this.<\/p>\n\n\n\n<h2 id=\"h-8-is-self-assessment-ending-because-of-mtd-for-income-tax\" class=\"wp-block-heading\">8. Is Self Assessment ending because of MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For those who are required to use MTD for Income Tax, the digital tax return replaces the need to file a Self Assessment return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, for those required to file a Self Assessment return and who are outside the scope of MTD for Income Tax, there will be no change. Self Assessment will continue to be used. This might affect company directors or those needing to declare pension income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those new to being a sole trader and\/or renting out property will not go straight to MTD for Income Tax, even if they\u2019re sure their income will be above the threshold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, they will sign-up for Self Assessment and then switch to MTD for Income Tax as and when HMRC notifies them in writing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively, they could voluntarily sign-up to MTD for Income Tax after signing up to Self Assessment, but this will mean they will still need to complete one year of Self Assessment.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">MTD: Your business survival guide<\/h2>\n\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-d74b8314-e3b1-4385-9b30-51a7de0ca091\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get MTD for Income Tax: The business survival guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/08\/AdobeStock_565116862-1440x810.jpg\" class=\"single-cta__image\" alt=\"A business woman successfully navigating MTD for Income Tax\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/08\/AdobeStock_565116862-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-9-is-there-free-software-for-mtd-for-income-tax\" class=\"wp-block-heading\">9. Is there free software for MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/cart\/free\/account\/?sku=A0009_GB\">Sage Sole Trader<\/a> lets you simplify your finances with free accounting software that makes bookkeeping, transaction tracking, and both MTD for Income Tax and Self Assessment easy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are other Sage Accounting plans that cater to different types and sizes of business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cost of compatible MTD accounting software is considered by the government to be a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-future-hmrc\/\">legitimate business expense<\/a> that businesses are expected to pay.<\/p>\n\n\n\n<h2 id=\"h-10-can-i-use-spreadsheets-for-mtd-for-income-tax\" class=\"wp-block-heading\">10. Can I use spreadsheets for MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The use of <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/speed-up-business-processes\/\">spreadsheets<\/a> is allowed for sole traders and landlords that fall within the scope of MTD for Income Tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there are complicated guidelines around the cutting\/copying and pasting of the tax records, which falls under the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\/\">digital linking rules<\/a>. That means, while spreadsheets can be used, care must be taken.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rules on how data can be transferred means that copying and pasting certain values from a spreadsheet into accounting software may break the law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Spreadsheets have inherent limitations, such as poor data security measures, and the ease at which a simple mistyping can accidentally erase a critical formula.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those using a spreadsheet for MTD for VAT require <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-a-bridging-tool-or-bridging-software\/\">bridging software<\/a> to file their returns with HMRC which is available from software vendors. The same kind of software is available for MTD for Income Tax and will probably link into a broader cloud-enabled service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most experts agree that it\u2019s simpler, easier, and more effective to use cloud accounting software.<\/p>\n\n\n\n<h2 id=\"h-11-how-long-do-i-have-to-keep-my-old-accounting-records-as-part-of-mtd-for-income-tax\" class=\"wp-block-heading\">11. How long do I have to keep my old accounting records as part of MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Records must be retained for <a href=\"https:\/\/www.gov.uk\/self-employed-records\/how-long-to-keep-your-records\">at least five years<\/a>, as under the Self Assessment system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference with MTD for Income Tax is that these records must be kept digitally. Any printed copies stored offline do not comply. In other words, you can\u2019t print out your old accounting and put it in a filing cabinet.<\/p>\n\n\n\n<h2 id=\"h-12-where-can-i-learn-more-about-mtd-for-income-tax\" class=\"wp-block-heading\">12. Where can I learn more about MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC is <a href=\"https:\/\/www.gov.uk\/guidance\/help-and-support-for-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">running webinars<\/a> about MTD for Income Tax. The <a href=\"https:\/\/www.gov.uk\/guidance\/sign-up-your-business-for-making-tax-digital-for-income-tax\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax government sign-up pages<\/a> also provide some information about how the scheme will work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government\u2019s <a href=\"https:\/\/www.gov.uk\/government\/publications\/making-tax-digital\/overview-of-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">overview of Making Tax Digital<\/a> contains higher-level information about its plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">access the tools you need to start MTD for Income Tax now and learn how to confidently<\/a> meet deadlines, or <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit Sage Advice<\/a> for more resources.<\/p>\n\n\n\n<h2 id=\"h-13-what-s-the-latest-on-mtd-for-income-tax-from-hmrc\" class=\"wp-block-heading\">13. What\u2019s the latest on MTD for Income Tax from HMRC?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC continues to release guidance to help businesses and individuals prepare for MTD for Income Tax. Recent updates highlight who needs to act now, and the range of exemptions and deferrals available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/youtu.be\/MIOsrxtlg88\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC\u2019s Director of MTD Craig Ogilvie<\/a> spoke at this year\u2019s Accountex North on some of the key takeaways for those set to be impacted by the next deadline. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s everything he covered:<\/p>\n\n\n\n<h3 id=\"h-don-t-wait-to-sign-up\" class=\"wp-block-heading\">Don\u2019t wait to sign up<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC strongly advises businesses not to delay in preparing for MTD for Income Tax. Waiting until HMRC contacts you is not recommended as by that point, it may be difficult to adapt and evolve your processes so that MTD works for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Getting ready early ensures you have time to choose suitable software and adjust your record-keeping processes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/5-reasons-to-start-making-tax-digital-for-income-tax-early\/\" target=\"_blank\" rel=\"noreferrer noopener\">5 reasons to start MTD for Income Tax early<\/a> and why they benefit your business.<\/p>\n\n\n\n<h3 id=\"h-exemptions-and-deferrals\" class=\"wp-block-heading\">Exemptions and deferrals<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of September, HMRC published guidance on exemptions. There are a number of exemptions and deferrals designed to make the rollout of MTD for Income Tax more practical and inclusive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Digital exclusion refers to when somebody who otherwise falls within the scope of MTD cannot undertake it for reasons of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>age, health or disability<\/li>\n\n\n\n<li>religious beliefs<\/li>\n\n\n\n<li>lack of internet access.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You need to apply to HMRC if you fall into these categories.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other exemptions apply automatically, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Individuals with income below the threshold<\/li>\n\n\n\n<li>Foster carers<\/li>\n\n\n\n<li>People acting under power of attorney.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You do not need to apply for these, although you might want to check with HMRC to make entirely sure your circumstances match the requirements. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Outside of the above, if your income as a sole trader or from property is above the threshold, you\u2019ll need to comply with MTD for Income Tax. You can&#8217;t opt-out for any other reason.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are currently digitally excluded from Making Tax Digital for VAT and your circumstances haven\u2019t changed, that exemption should continue to apply for Income Tax as well. You\u2019ll need to contact HMRC to confirm this.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re unsure about exclusions from MTD, <a href=\"https:\/\/www.gov.uk\/guidance\/find-out-if-you-can-get-an-exemption-from-making-tax-digital-for-income-tax\">visit the GOV.UK website to see if you\u2019re eligible.<\/a><\/p>\n\n\n\n<h3 id=\"h-how-mtd-for-income-tax-will-help-businesses\" class=\"wp-block-heading\">How MTD for Income Tax will help businesses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC is confident that Making Tax Digital will help sole traders and landlords avoid costly mistakes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many taxpayers currently leave filing until the last minute or struggle to maintain accurate records. MTD for Income Tax aims to address these challenges by improving record keeping and offering a clearer picture of tax liability throughout the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, better records lead to better outcomes, not only for tax accuracy but also for running a more efficient business.<\/p>\n\n\n\n<h2 id=\"h-final-thoughts-on-mtd-for-income-tax\" class=\"wp-block-heading\">Final thoughts on MTD for Income Tax<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The key to getting ready for MTD for Income Tax is early learning and getting ahead with adoption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aim to sign up as soon as you can. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need to <a href=\"https:\/\/www.sage.com\/en-gb\/cart\/buy\/email\/?sku=A0010_GB&amp;promocode=S1DWCOMGBWSACCI1006\">switch to using accounting software<\/a> to comply with MTD for Income Tax, start now to adapt processes before your mandated start date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most if not all cloud accounting software like Sage Accounting or Sage Sole Trader has been updated, and you can start using it today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax might seem like a big change but by splitting out the required tasks into chunks, you can introduce the requirements gradually for the benefit of you and your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor\u2019s note: This article was first published in September 2021 and has been updated and rewritten several times for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">MTD: Your business survival guide<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Your real world guide to using Making Tax Digital for Income Tax in April 2026, April 2027 or April 2028. For sole traders, landlords, freelancers, side-hustlers\u2014and more.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-d74b8314-e3b1-4385-9b30-51a7de0ca091\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get MTD for Income Tax: The business survival guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/08\/AdobeStock_565116862-1440x810.jpg\" class=\"single-cta__image\" alt=\"A business woman successfully navigating MTD for Income Tax\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/08\/AdobeStock_565116862-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/mtd-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for businesses\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-31973 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-making-tax-digital-for-vat tag-tax tag-vat business_type-small-business business_type-medium-sized-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-642394299-1440x810.jpg\" class=\"card-post__image\" alt=\"Staying on top of business changes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-642394299-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-642394299-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-642394299-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-17T09:48:05+01:00\">17 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-calculator\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tVAT Calculator: use now to add &amp; remove VAT\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tCalculate VAT quickly and accurately with our free VAT calculator (estimator). Whether you&#8217;re adding VAT to a price or working out the VAT amount included in a total, this tool helps you make the calculation in seconds. It&#8217;s ideal for businesses, sole traders and anyone who needs a simple way to manage VAT calculations.\n\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30636 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-update\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-684x384.jpg\" class=\"card-post__image\" alt=\"Man at a desk working through papers on a computer\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMTD quarterly updates: Everything you need to know\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-31395 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-bookkeeping tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-updates-supercharge-your-business\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-684x384.jpg\" class=\"card-post__image\" alt=\"A small business person working on MTD\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow MTD quarterly updates can supercharge your business. Yes, really.\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-31363 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-updates-listicle\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\t10 tips and tricks for your MTD quarterly update\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-10168 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-business-finances tag-business-support business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/accounting-for-startups-entrepreneurs\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2020\/11\/200122_Sage_BridgeHousing3578-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-07T15:59:41+01:00\">7 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tStartup accounting: A practical guide for entrepreneurs\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover everything you need to know about MTD for Income Tax<\/p>\n","protected":false},"author":1887,"featured_media":11577,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":true,"_yoast_wpseo_focuskeywords":"","_yoast_wpseo_keywordsynonyms":"","_yoast_wpseo_primary_category":"6","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6,9],"tags":[23,135,30,206,27],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[77,142,334,200,727,109],"coauthors":[677],"class_list":["post-10039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-bookkeeping","tag-business-finances","tag-mtd-business","tag-need-to-know","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Amelia Dunn","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-608166769.jpg","imagine_tags":{"77":"Accounting software","142":"Making Tax Digital for businesses","334":"Making tax digital for income tax","200":"Payroll","727":"Self Assessment and Making Tax Digital for Income Tax","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1887"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=10039"}],"version-history":[{"count":2,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10039\/revisions"}],"predecessor-version":[{"id":31604,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/10039\/revisions\/31604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11577"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=10039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=10039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=10039"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=10039"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=10039"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=10039"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=10039"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=10039"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=10039"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=10039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}