Playing now

Playing now

Free e-book: A guide to Making Tax Digital for Income Tax

Back to search results

Making Tax Digital (MTD) for Income Tax is the biggest tax personal tax shake-up in a generation.

Put simply, it legally requires many sole traders and landlords to use software for their accounting relating to income tax.

For those using an ad hoc solution of paper-based notes or spreadsheets for accounting, this is sure to come as quite a shock.

And millions of individuals across the UK are likely to fall within the scope of MTD for Income Tax.

But there’s no need to panic.

Our free e-book, A guide to Making Tax Digital for Income Tax, provides everything you need to know, and reveals how to adapt your business so it will thrive following the introduction of MTD for Income Tax.

It covers the following:

  • Does MTD for Income Tax apply to you? We explain and offer support so you can start following its rules
  • Find out what MTD for Income Tax requires and how your tax accounting might change
  • What you need to do to sign up, and if the pilot scheme is right for you
  • Master what’s required for your quarterly updates, end of period statements and final declaration
  • See a two-year timeline with key dates of when you must provide vital information to HMRC
  • Discover when and how you’ll need to pay your tax following MTD for Income Tax’s introduction
  • Find out if spreadsheets can be used for MTD for Income Tax accounting.

MTD for Income Tax is due to start in April 2024 (following a one-year delay). That might sound like some time away. But it’ll be here much sooner than you think. If you’re not ready, you could face penalties from HMRC.

By using our guide, you can start your preparations today. You’ll see where the areas to make changes are in your business and its processes, and learn what you should do to be ready.

Your business will thank you for it. Making Tax Digital really does make business admin much simpler. So why not embrace it sooner rather than later?

Editor’s note: MTD for Income Tax has been postponed until April 2024. This article (first published in August 2021) has been updated to reflect that.

A guide to Making Tax Digital for Income Tax

Need help to get your business ready for Making Tax Digital? Download this free guide to learn about MTD for Income Tax and get prepared now for changes that start from April 2023.

Download your free guide

Never miss an episode

Subscribe by email and get Sound Advice delivered to your inbox every two weeks with the Sage Advice newsletter with a ton of related articles, templates and problem solving guides for small businesses so you can put our sound advice into practice.

Ask the author a question or share your advice

If you are a customer with a question about a product please visit our Help Centre where we answer customer queries about our products. When you leave a comment on this article, please note that if approved, it will be publicly available and visible at the bottom of the article on this blog. While your email address will not be publicly available, we will collect, store and use it, along with any other personal data you provide as part of your comment, to respond to your queries offline, provide you with customer support and send you information about our products and services as requested. For more information on how Sage uses and looks after your personal data and the data protection rights you have, please read our Privacy Policy.

Sage Advice Logo