Making Tax Digital for Income Tax – usually shortened to Making Tax Digital or simply MTD – came into effect on 6th April 2026. It’s one of the most significant changes to the UK tax system in living memory.
Many sole traders and landlords who are used to completing a self assessment just once a year will now have to switch to quarterly reporting, submitting digital updates every three months using HMRC-compatible accounting software.
Don’t worry, though – Cross Accounting provide a comprehensive MTD service for sole traders and landlords who need to get to grips with this new way of doing things. With offices in Cardiff and Bridgend, we can help people all over South Wales and beyond.
Get in touch now to find out how we can help you with Making Tax Digital.
Our MTD Service
Our experienced accountants will…
Contact Us for Help with Making Tax Digital
- Discuss how best to approach Making Tax Digital
- Set up MTD-compliant software to manage your income and expenses digitally
- Submit quarterly updates on your behalf
- Help you to keep separate records for self-employment and property if you receive income from both
- Handle your final year-end return and adjustments (including other income types like PAYE, dividends, interest, capital gains, etc.)
- Help you to understand how it all works, easing your mind and putting any uncertainties to rest
Contact Us for Help with Making Tax Digital
Making Tax Digital FAQ
Making Tax Digital is the new way for sole traders and landlords to report their finances to HMRC. It replaces the traditional once-a-year Self Assessment with a fully digital approach to recordkeeping and reporting. If affected, you must now submit quarterly updates to HMRC along with a final end-of-year submission.
This change – putting greater emphasis on accurate digital records – is part of HMRC's push for tighter compliance checks and greater transparency. It will mean extra work and more regular filings, but the goal is clearer financial records, smoother reporting, and fewer surprises for taxpayers as well as for HMRC themselves.
Making Tax Digital comes into effect on 6th April 2026. To begin with, it will only apply to those whose total income from self-employment and property exceeds £50,000 per year. However, this threshold will be lowered over the coming years.
Making Tax Digital affects sole traders and landlords who previously submitted annual Self Assessments. As of 6th April 2026, it only affects those whose total annual income (from self-employment and property combined) is over £50,000. But from April 2027, anyone earning more than £30,000 per year from self-employment and property will be included. After that, the threshold is expected to drop to £20,000 in April 2028. Ultimately, almost everyone who currently submits a yearly Self Assessment will be required to switch to Making Tax Digital – so even if your annual income is below the current threshold, it may be a good idea to start preparing for MTD now.
If affected, HMRC will expect you to keep full digital records of your income and expenses using MTD-compatible software. Casual bookkeeping practices that rely on bank statements and spreadsheets will no longer suffice. You will also be expected to submit quarterly updates (along with a final end-of-year submission) for each income source. So if you earn money from both self-employment and renting out a property, you will have to submit two sets of quarterly updates along with a combined annual return – that’s a total of nine submissions per year.
Cross Accounting Service: Cardiff’s MTD Experts
If you’re based near Cardiff and you need help with Making Tax Digital, we at Cross Accounting are here for you. We've already implemented MTD-compliant processes and software, so we’re ready to guide you through this big change.
We have offices in both Cardiff and Bridgend, and we serve clients right across South Wales and beyond. Scroll down to view some of the feedback we’ve received from people affected by the switch to Making Tax Digital.
Our Happy Clients
Testimonials
Simon
GFitness
“I came to Cross Accounting new and fresh into Limited Company trading, they helped set my business up for me and have been amazing with the support ever since. I know I can call them anytime with any questions. The standard and efficiency…”
Mike
Cathays Sports and Social Club
“I cannot say enough nice things about Nicola and her team, who provide a professionalism and prompt courteous customer service. All the team give 100% and we are pleased with every one of them.”
Simon
Simons man and a van
“Cross accounting services have provided an excellent service over the past two years while I started my business. Even when Nicola was on leave, Mo and the other staff were there to answer all my queries. Very friendly and approachable.”
Claire
Oxygen Fitness
“I would just like to say that Nicola and her team at Cross Accounting Service have been so helpful in setting up our business to be VAT Registered. They have replied to every Email I have sent and phone call I have made and there have been many!!”
Chris Elliott
Chris Handyman Services
“I have used Cross Accountants for several years now and can honestly say that Nicola and her team have helped me to ensure that all of the work around the self-assessment part of my business has run smoothly and without any issues…”