{"id":23043,"date":"2026-07-30T15:27:44","date_gmt":"2026-07-30T14:27:44","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=23043"},"modified":"2026-08-07T15:40:37","modified_gmt":"2026-08-07T14:40:37","slug":"why-has-hmrc-written-to-me-about-making-tax-digital-for-income-tax","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/why-has-hmrc-written-to-me-about-making-tax-digital-for-income-tax\/","title":{"rendered":"Why has HMRC written to me about Making Tax Digital for Income Tax?\u00a0"},"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\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/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\tWhy has HMRC written to me about Making Tax Digital for Income Tax? \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\tWondering why HMRC has written to you about Making Tax Digital? Our guide answers the most common questions and explains what the changes mean for your tax reporting.\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=\"2026-07-30T15:27:44+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=\"Why has HMRC written to me about Making Tax Digital for Income Tax?\u00a0\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/why-has-hmrc-written-to-me-about-making-tax-digital-for-income-tax\/\"\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\/keirthomasbryant\/\">\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\/06\/keir-short-hair-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair.jpg 760w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Keir Thomas-Bryant<\/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\">If you have received a letter or email from HM Revenue and Customs (HMRC) about&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital for Income Tax<\/a>, it is&nbsp;likely because&nbsp;HMRC believes you will need to follow the rules from 6 April 2027.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This usually applies if you are a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-sole-traders\" target=\"_blank\" rel=\"noreferrer noopener\">sole trader<\/a>, a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/landlords\" target=\"_blank\" rel=\"noreferrer noopener\">landlord<\/a>, or both, you are registered for&nbsp;Self Assessment, and your qualifying income is above \u00a330,000.<\/p>\n\n\n\n<section class=\"wp-block-sage-container is-constrained is-style-jade\"><div class=\"sage-container__inner\">\n<h3 id=\"h-key-takeaways-nbsp\" class=\"wp-block-heading\"><strong>Key takeaways<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HMRC is contacting sole traders and landlords who it believes will need to use&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-guide-income-tax\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital (MTD) for Income Tax<\/a>.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>From 6 April 2027, MTD for Income Tax applies to people with qualifying income above \u00a330,000, based on the qualifying self-employment and property income reported through&nbsp;Self-Assessment.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you are in scope, you will need to keep digital records, use MTD-compatible software, send quarterly updates, and&nbsp;submit&nbsp;a digital tax return.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MTD for Income Tax does not change how much Income Tax you pay. It changes how you keep records and report information to HMRC.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your accountant or bookkeeper manages your tax, they can still help\u2014but you&nbsp;remain&nbsp;legally responsible for your tax return.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/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-who-this-applies-to\" data-level=\"2\">Who this applies to<\/a><\/li><li><a href=\"#h-when-did-mtd-for-income-tax-start\" data-level=\"2\">When did MTD for Income Tax start?<\/a><\/li><li><a href=\"#h-1-why-has-hmrc-contacted-me-about-making-tax-digital-for-income-tax\" data-level=\"2\">1. Why has HMRC contacted me about Making Tax Digital for Income Tax?<\/a><\/li><li><a href=\"#h-2-what-is-mtd-for-income-tax\" data-level=\"2\">2. What is MTD for Income Tax?<\/a><\/li><li><a href=\"#h-3-what-do-i-have-to-do-for-mtd-for-income-tax\" data-level=\"2\">3. What do I have to do for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-4-what-if-my-income-drops-below-30-000\" data-level=\"2\">4. What if my income drops below &pound;30,000?<\/a><\/li><li><a href=\"#h-5-isn-t-mtd-for-income-tax-going-to-make-my-accounting-more-complicated\" data-level=\"2\">5. Isn&rsquo;t MTD for Income Tax going to make my accounting more complicated?<\/a><\/li><li><a href=\"#h-6-will-i-need-any-extra-software-for-mtd-for-income-tax\" data-level=\"2\">6. Will I need any extra software for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-7-can-i-opt-out-of-mtd-for-income-tax\" data-level=\"2\">7. Can I opt out of MTD for Income Tax?<\/a><\/li><li><a href=\"#h-8-my-accountant-or-bookkeeper-handles-my-tax-will-mtd-affect-that\" data-level=\"2\">8. My accountant or bookkeeper handles my&nbsp;tax. Will MTD affect that?<\/a><\/li><li><a href=\"#h-9-does-mtd-affect-how-much-income-tax-i-pay\" data-level=\"2\">9. Does MTD affect how much Income Tax I pay?<\/a><\/li><li><a href=\"#h-10-is-mtd-for-income-tax-a-new-tax-system\" data-level=\"2\">10. Is MTD for Income Tax a new tax system?<\/a><\/li><li><a href=\"#h-11-my-accounting-is-simple-do-i-still-need-quarterly-updates\" data-level=\"2\">11. My accounting is simple. Do I still need quarterly updates?<\/a><\/li><li><a href=\"#h-12-can-i-use-spreadsheets-for-mtd-for-income-tax\" data-level=\"2\">12. Can I use spreadsheets for MTD for Income Tax?<\/a><\/li><li><a href=\"#h-13-i-run-a-business-with-employees-does-mtd-for-income-tax-apply-to-me\" data-level=\"2\">13. I run a business with employees. Does MTD for Income Tax apply to me?<\/a><\/li><li><a href=\"#h-14-i-am-employed-full-time-but-run-a-side-hustle-does-mtd-apply-to-me\" data-level=\"2\">14. I am employed full-time but run a side hustle. Does MTD apply to me?<\/a><\/li><li><a href=\"#h-15-can-i-switch-to-a-limited-company-to-avoid-mtd-for-income-tax\" data-level=\"2\">15. Can I switch to a limited company to avoid MTD for Income Tax?<\/a><\/li><li><a href=\"#h-16-what-mtd-for-income-tax-dates-do-i-need-to-know\" data-level=\"2\">16. What MTD for Income Tax dates do I need to know?<\/a><\/li><li><a href=\"#h-17-i-already-use-mtd-for-vat-do-i-need-to-do-anything\" data-level=\"2\">17. I already use MTD for VAT. Do I need to do anything?<\/a><\/li><li><a href=\"#h-18-i-used-3-line-accounts-on-my-self-assessment-tax-return-can-i-continue\" data-level=\"2\">18. I used 3-line accounts on my&nbsp;Self Assessment&nbsp;tax return. Can I continue?<\/a><\/li><li><a href=\"#h-common-mistakes-to-avoid\" data-level=\"2\">Common mistakes to avoid<\/a><\/li><li><a href=\"#h-what-to-do-next\" data-level=\"2\">What to do next<\/a><\/li><li><a href=\"#h-frequently-asked-questions\" data-level=\"2\">Frequently asked questions<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-who-this-applies-to\" class=\"wp-block-heading\"><strong>Who this applies to<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>You are likely to be affected if\u2026<\/strong>&nbsp;<\/td><td><strong>You may not be affected if\u2026<\/strong>&nbsp;<\/td><\/tr><tr><td>You are a sole trader, landlord, or both, and your qualifying self-employment and\/or property income is above the relevant threshold.&nbsp;<\/td><td>You are not registered for&nbsp;Self Assessment, you do not have qualifying self-employment or property income above the threshold, or you meet an HMRC exemption.&nbsp;<\/td><\/tr><tr><td>You have received a notification from HMRC saying you are included in MTD for Income Tax.&nbsp;<\/td><td>You only have employment income taxed through PAYE, with no qualifying sole trader or landlord income above the threshold.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-when-did-mtd-for-income-tax-start\" class=\"wp-block-heading\">When did MTD for Income Tax start?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income above \u00a350,000.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article focuses on the next wave: people who need to follow MTD for Income Tax from 6 April 2027 because their qualifying income is above \u00a330,000.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From 6 April 2028, the rules are expected to include sole traders and landlords with qualifying income above \u00a320,000.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have already started MTD for Income Tax, or think you should have done so, you may want to read Sage Advice guidance on&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-operational-checklist\" target=\"_blank\" rel=\"noreferrer noopener\">what to do once MTD for Income Tax has started<\/a>,&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/self-assessment-ending-making-tax-digital-sole-traders\" target=\"_blank\" rel=\"noreferrer noopener\">switching from Self Assessment<\/a>, and what MTD means for trades and skilled workers.<\/p>\n\n\n\n<h2 id=\"h-1-why-has-hmrc-contacted-me-about-making-tax-digital-for-income-tax-nbsp\" class=\"wp-block-heading\"><strong>1. Why has HMRC contacted me about Making Tax Digital for Income Tax?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If HMRC has recently written to you about Making Tax Digital (MTD), it\u2019s very likely that two things are tHMRC has&nbsp;probably contacted&nbsp;you because it believes you are in scope for Making Tax Digital for Income Tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>This is&nbsp;likely because&nbsp;you:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Run one or more sole trader businesses, are a landlord, or both; and&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are registered for&nbsp;Self-Assessment&nbsp;with qualifying income above \u00a330,000.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If your&nbsp;Self-Assessment&nbsp;information shows that you are in scope, you will need to use MTD-compatible software to keep digital records, send quarterly updates, and&nbsp;submit&nbsp;a digital tax return.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC\u2019s letter is a heads-up. It is intended to give you time to understand the change, choose suitable software, and prepare your record-keeping before your obligations begin.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-2-what-is-mtd-for-income-tax-nbsp\" class=\"wp-block-heading\"><strong>2. What is MTD for Income Tax?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital for Income Tax<\/a>&nbsp;is HMRC&#8217;s system for moving Income Tax record-keeping and reporting onto approved digital software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is separate from Making Tax Digital for VAT.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, even if you already use MTD for VAT\u2014or are not VAT registered\u2014MTD for Income Tax may still affect you if your qualifying income is above the threshold.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax applies in phases.:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Those with qualifying income above \u00a350,000 joined from April 2026.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Those with qualifying income above \u00a330,000 join from April 2027.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Those with qualifying income above \u00a320,000 are expected to join from April 2028.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-3-what-do-i-have-to-do-for-mtd-for-income-tax-nbsp\" class=\"wp-block-heading\"><strong>3. What do I have to do for MTD for Income Tax?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In summary, you will need to do four things:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>keep digital records,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>submit quarterly updates,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>submit a digital tax return,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>and use MTD-compatible software.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-keep-digital-records-nbsp\" class=\"wp-block-heading\"><strong>Keep digital records<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You will need to keep records of your business or property income and expenses digitally.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For most people, this means using MTD-compatible accounting software.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-submit-quarterly-updates-nbsp\" class=\"wp-block-heading\"><strong>Submit quarterly updates<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You or your accountant\/bookkeeper will need to&nbsp;submit&nbsp;updates about income and expenditure to HMRC every three months.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have more than one sole trader business, you will need to provide separate quarterly updates for each business.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rental income is also reported separately, although income from multiple UK properties can be included in the same property update. Foreign property income requires its own update.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-submit-a-digital-tax-return-nbsp\" class=\"wp-block-heading\"><strong>Submit a digital tax return<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After the tax year ends, you will need to digitally sign and&nbsp;submit&nbsp;a tax return by 31 January.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This confirms your income for the year and is&nbsp;like&nbsp;the existing&nbsp;Self-Assessment&nbsp;tax return.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-use-mtd-compatible-software-nbsp\" class=\"wp-block-heading\"><strong>Use MTD-compatible software<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You will need software that can keep digital records and connect with HMRC.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you use more than one software tool, the records must be&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\" target=\"_blank\" rel=\"noreferrer noopener\">digitally linked<\/a>&nbsp;where required.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-sign-up-nbsp\" class=\"wp-block-heading\"><strong>Sign up<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You will need to sign up for MTD for Income Tax before your obligations begin.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Enrolment is not automatic.<\/p>\n\n\n\n<h2 id=\"h-4-what-if-my-income-drops-below-30-000-nbsp\" class=\"wp-block-heading\"><strong>4. What if my income drops below \u00a330,000?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If HMRC has&nbsp;identified&nbsp;you as meeting the income threshold based on your&nbsp;Self-Assessment&nbsp;tax return, you will still&nbsp;be required&nbsp;to join MTD for Income Tax from April 2027, even if your income drops below \u00a330,000 in the following year.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your qualifying income&nbsp;remains&nbsp;below \u00a330,000 for three consecutive years, you can contact HMRC to ask&nbsp;to&nbsp;return to the&nbsp;Self-Assessment&nbsp;tax return system.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bear in mind that the MTD for Income Tax qualifying income threshold is expected to fall to \u00a320,000 from April 2028.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-5-isn-t-mtd-for-income-tax-going-to-make-my-accounting-more-complicated\" class=\"wp-block-heading\">5. Isn\u2019t MTD for Income Tax going to make my accounting more complicated?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">MTD for Income Tax may change how often you review and&nbsp;submit&nbsp;information, but MTD-compatible software can make the process easier once your records are set up correctly.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, quarterly updates can be created from the income and expenditure already recorded in your accounting software.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should still review the information before it is submitted.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The digital tax return should also be easier to complete if your income and expenses have been kept up to date throughout the year.<\/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<h2 id=\"h-6-will-i-need-any-extra-software-for-mtd-for-income-tax\" class=\"wp-block-heading\">6. Will I need any extra software for MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You will need software that is&nbsp;recognised&nbsp;by HMRC as MTD-ready.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Existing software from many major providers, including Sage Accounting plans, is already compatible with MTD for Income Tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you already use accounting software, check whether your plan supports MTD for Income Tax and whether you need to activate a setting before your obligations begin.<\/p>\n\n\n\n<h2 id=\"h-7-can-i-opt-out-of-mtd-for-income-tax\" class=\"wp-block-heading\">7. Can I opt out of MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are in scope, MTD for Income Tax is a legal requirement.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You cannot choose to opt out or delay signing up simply because you prefer&nbsp;Self-Assessment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, HMRC allows exemption requests in some circumstances.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may apply if your disability or age means it is not practical for you to keep or&nbsp;submit&nbsp;digital records, or if your religious beliefs are incompatible with using electronic records or communications.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You will need to apply to HMRC for exemption and explain why. If you already have an exemption from MTD for VAT, this should be carried across automatically for MTD for Income Tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some people are automatically exempt, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>foster carers or shared lives carers whose only income is qualifying care income,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>people without a UK National Insurance number by the relevant date,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>trustees,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>personal representatives of someone who has died,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lloyd\u2019s underwriters in relation to underwriting business,&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>and non-resident companies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-8-my-accountant-or-bookkeeper-handles-my-nbsp-tax-will-mtd-affect-that-nbsp\" class=\"wp-block-heading\"><strong>8. My accountant or bookkeeper handles my&nbsp;tax. Will MTD affect that?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your accountant or bookkeeper can continue to manage your tax affairs under MTD for Income Tax, including quarterly updates and the digital tax return.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, you&nbsp;remain&nbsp;legally responsible for reviewing and approving the digital tax return before it is&nbsp;submitted.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speak to your accountant or bookkeeper early so you can agree how and when you will share income and expense information.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may need a quarterly process for sending source documents, receipts, invoices, bank records, or software access.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are an accountant, you may want to read guidance on&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-accountants-prepare-landlord-clients\" target=\"_blank\" rel=\"noreferrer noopener\">how to prepare your landlord clients for MTD<\/a>.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-9-does-mtd-affect-how-much-income-tax-i-pay-nbsp\" class=\"wp-block-heading\"><strong>9. Does MTD affect how much Income Tax I pay?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. MTD for Income Tax is not a new tax.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is a new digital reporting process for sole traders and landlords within scope.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For affected taxpayers, it replaces the traditional Self-Assessment tax return process for reporting relevant self-employment and property income.<\/p>\n\n\n\n<h2 id=\"h-10-is-mtd-for-income-tax-a-new-tax-system-nbsp\" class=\"wp-block-heading\"><strong>10. Is MTD for Income Tax a new tax system?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. MTD for Income Tax is just a new way of reporting income tax for sole traders and landlords. It replaces the Self Assessment tax return for those affected.<\/p>\n\n\n\n<h2 id=\"h-11-my-accounting-is-simple-do-i-still-need-quarterly-updates-nbsp\" class=\"wp-block-heading\"><strong>11. My accounting is simple. Do I still need quarterly updates?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, if you are in scope.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rules apply even if your accounting is simple, your income is predictable, or your earnings arrive&nbsp;mainly in&nbsp;one part of the year.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, seasonal businesses, holiday lets, landlords with regular monthly income, and businesses with limited expenses may still need to&nbsp;submit&nbsp;quarterly updates.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quarterly updates require basic income and expenditure information.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They do not&nbsp;require&nbsp;all the final adjustments, allowances, or charges that may be included in the digital tax return.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-12-can-i-use-spreadsheets-for-mtd-for-income-tax\" class=\"wp-block-heading\">12. Can I use spreadsheets for MTD for Income Tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, spreadsheets can be used for MTD for Income Tax provided you also use MTD-compatible bridging software to allow communication with HMRC in order to submit the quarterly updates and digital tax return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also use spreadsheets for non-ledger activities such as adjustment calculations once the data is in the ledger\u2014although you should ensure there\u2019s a legally-compliant <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\/\" type=\"link\" id=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital link<\/a>. In other words, you cannot cut\/copy and paste data between the accounting software and the spreadsheet, or hand type it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, using spreadsheets for your accounting is not a good idea. It\u2019s very easy to accidentally overwrite cells in a spreadsheet, for example, and spreadsheets easily become corrupted. If that happened then not only would you lose data but you\u2019d fall short of the legal requirements of MTD for Income Tax, and could attract penalties from HMRC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, you will be legally required to securely keep the digital records contained within the spreadsheets for five years following 31 January after the end of the tax year. Keeping any file for that long can be a challenge. Using dedicated accounting software takes care of this for you, and is simply easier and much less prone to errors.<\/p>\n\n\n\n<h2 id=\"h-13-i-run-a-business-with-employees-does-mtd-for-income-tax-apply-to-me-nbsp\" class=\"wp-block-heading\"><strong>13. I run a business with employees. Does MTD for Income Tax apply to me?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Having employees does not exempt you from MTD for Income Tax.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are a self-employed&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-sole-traders\" target=\"_blank\" rel=\"noreferrer noopener\">sole trader<\/a>, you are registered for&nbsp;Self-Assessment, and your qualifying income is above \u00a330,000, you are legally required to follow MTD for Income Tax from April 2027.<\/p>\n\n\n\n<h2 id=\"h-14-i-am-employed-full-time-but-run-a-side-hustle-does-mtd-apply-to-me-nbsp\" class=\"wp-block-heading\"><strong>14. I am employed full-time but run a side hustle. Does MTD apply to me?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Being employed full-time does not exempt you from MTD for Income Tax if your qualifying self-employment or property income is above the threshold.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If HMRC has contacted you about MTD for Income Tax, it is likely because your&nbsp;Self Assessment&nbsp;information shows qualifying income above \u00a330,000 from your side hustle, rental income, or both.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One benefit of MTD-compatible software is that some employment tax information, such as P60 data, may be drawn into your digital tax return where available.<\/p>\n\n\n\n<h2 id=\"h-15-can-i-switch-to-a-limited-company-to-avoid-mtd-for-income-tax-nbsp\" class=\"wp-block-heading\"><strong>15. Can I switch to a limited company to avoid MTD for Income Tax?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Limited companies are not affected by MTD for Income Tax in the same way as sole traders and landlords.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, incorporating a business or transferring property into a limited company is&nbsp;a significant decision&nbsp;with legal, tax, and commercial consequences.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether it is right for you depends on your circumstances, so you should seek professional advice from an accountant or similar adviser before making a change.<\/p>\n\n\n\n<h2 id=\"h-16-what-mtd-for-income-tax-dates-do-i-need-to-know-nbsp\" class=\"wp-block-heading\"><strong>16. What MTD for Income Tax dates do I need to know?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Generally speaking, and assuming your tax year begins on 6 April, these are the dates you need to know fIf your tax year begins on 6 April and you are in the April 2027 phase, these are the key dates for the 2027\/28 tax year:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Quarterly update 1: 7 August 2027&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>quarterly update 2: 7 November 2027&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>quarterly update 3: 7 February 2028&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>quarterly update 4: 7 May 2028&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>digital tax return: 31 January 2029.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Good accounting software can remind you about these dates and help prepare&nbsp;the updates&nbsp;and digital tax&nbsp;return.<\/p>\n\n\n\n<h2 id=\"h-17-i-already-use-mtd-for-vat-do-i-need-to-do-anything-nbsp\" class=\"wp-block-heading\"><strong>17. I already use MTD for VAT. Do I need to do anything?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, if you are in scope for MTD for Income Tax. MTD for VAT and MTD for Income Tax are separate systems, so you need to understand and sign up for the Income Tax requirements separately.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The penalty points systems for MTD for VAT and MTD for Income Tax are also separate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Penalty points for one tax do not affect the separate&nbsp;points&nbsp;tally for the other.<\/p>\n\n\n\n<h2 id=\"h-18-i-used-3-line-accounts-on-my-nbsp-self-assessment-nbsp-tax-return-can-i-continue-nbsp\" class=\"wp-block-heading\"><strong>18. I used 3-line accounts on my&nbsp;Self Assessment&nbsp;tax return. Can I continue?&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are eligible to use 3-line accounts because your income is below the VAT threshold, you can continue to report total income, total expenses, and profit in your quarterly updates.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MTD-compatible software can use this information to help complete your digital tax return at the end of the tax year.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-common-mistakes-to-avoid\" class=\"wp-block-heading\"><strong>Common mistakes to avoid<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assuming the HMRC letter is only a general awareness message and does not apply to you.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Waiting until the first quarterly update deadline before setting up software or digital records.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Thinking&nbsp;rental income is ignored if you are not self-employed.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Assuming MTD for VAT means you are automatically signed up for MTD for Income Tax.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Using spreadsheets without checking whether the required&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-mtd-digital-link\" target=\"_blank\" rel=\"noreferrer noopener\">digital links<\/a>&nbsp;and bridging software are in place.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-what-to-do-next\" class=\"wp-block-heading\"><strong>What to do next<\/strong><\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Read the HMRC letter carefully and check which income threshold or tax year it refers to.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Confirm your qualifying income from self-employment and property sources.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Check whether your current accounting software is MTD-compatible.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li>Speak to your accountant or bookkeeper about how quarterly reporting will work.&nbsp;<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li>Create a repeatable record-keeping routine before your first quarterly update is due.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">There are&nbsp;<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 Making Tax Digital for Income Tax early<\/a>&nbsp;that may help you prepare.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-final-thoughts\" class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Receiving an HMRC letter about MTD for Income Tax can feel like&nbsp;a big change, especially if you have used&nbsp;Self Assessment&nbsp;for years.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The main point to understand is simple: if you are in scope, you will need to keep digital records and report information to HMRC more regularly through MTD-compatible software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Preparing early can make the move easier.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By checking your income position, choosing suitable software, and&nbsp;agreeing&nbsp;a process with your accountant or bookkeeper, you can reduce last-minute admin and stay ready for the April 2027 start date.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-frequently-asked-questions\" class=\"wp-block-heading\">Frequently asked questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1777534128299\"><strong class=\"schema-faq-question\"><strong>What happens if I miss an MTD for Income Tax quarterly update deadline?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">HMRC operates a penalty points system for MTD for Income Tax.\u00a0\u00a0<br>Missing a quarterly update can lead to a penalty point.\u00a0\u00a0<br>If you reach the relevant points threshold, HMRC can issue a financial penalty.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777534197380\"><strong class=\"schema-faq-question\"><strong>How much does MTD for Income Tax software cost?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">Costs vary depending on the provider and plan.\u00a0\u00a0<br>Some MTD-compatible software is free, while more fully featured plans may cost more.\u00a0\u00a0<br>If you already use accounting software, check whether your current plan is MTD-ready.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777534297037\"><strong class=\"schema-faq-question\"><strong>What counts as qualifying income for MTD for Income Tax?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">Qualifying income is the combined gross income, before expenses, from your sole\u00a0trader\u00a0businesses and\/or rental properties.\u00a0\u00a0<br>HMRC uses\u00a0Self Assessment\u00a0information to decide whether you are in scope.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777534352546\"><strong class=\"schema-faq-question\"><strong>When do I need to sign up for MTD for Income Tax if I earn over \u00a330,000?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">You need to sign up before your obligations begin in April 2027.\u00a0\u00a0<br>Enrolment is not automatic, so you should allow time to register, configure your software, and\u00a0establish\u00a0your digital record-keeping routine.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777534479645\"><strong class=\"schema-faq-question\"><strong><strong>Do I need MTD for Income Tax if I am a landlord but not self-employed?\u00a0<\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, if your qualifying rental income is above the relevant threshold and you are registered for\u00a0Self Assessment.<br><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/landlords\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax applies to landlords<\/a>\u00a0as well as sole traders.<strong>\u00a0<\/strong><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1785421591352\"><strong class=\"schema-faq-question\"><strong>Does MTD for Income Tax replace\u00a0Self Assessment?\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">For affected sole traders and landlords,\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/self-assessment-ending-making-tax-digital-sole-traders\" target=\"_blank\" rel=\"noreferrer noopener\">MTD for Income Tax changes how relevant income and expenses are reported<\/a>.\u00a0<br>You still confirm your final tax position through a digital tax return.<\/p> <\/div> <\/div>\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<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\/mtd-accountants\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for accountants\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\/making-tax-digital-for-income-tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for Income Tax\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\/making-tax-digital-for-vat\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for VAT\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<\/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>Wondering why HMRC has written to you about Making Tax Digital? Our guide answers the most common questions and explains what the changes mean for your tax reporting.<\/p>\n","protected":false},"author":280,"featured_media":16312,"menu_order":0,"comment_status":"closed","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":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"making tax digital for income tax\",\"score\":87}]","_yoast_wpseo_keywordsynonyms":"[\"making tax digital\",\"mtd for income tax, mtd, mtd for IT, mtd for ITSA\"]","_yoast_wpseo_primary_category":"9","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":[9],"tags":[23,29,30,343,342,206],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[334,727],"coauthors":[369],"class_list":["post-23043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","tag-bookkeeping","tag-mtd-accountants","tag-mtd-business","tag-making-tax-digital-for-income-tax","tag-making-tax-digital-for-vat","tag-need-to-know","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-912803244.jpg","imagine_tags":{"334":"Making tax digital for income tax","727":"Self Assessment and Making Tax Digital for Income Tax"}},"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\/23043","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\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=23043"}],"version-history":[{"count":4,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/23043\/revisions"}],"predecessor-version":[{"id":31882,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/23043\/revisions\/31882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/16312"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=23043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=23043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=23043"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=23043"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=23043"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=23043"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=23043"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=23043"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=23043"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=23043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}