If you’re self-employed or have rental income, you’ve probably already seen the noise around Making Tax Digital for Income Tax.
The software companies are spending heavily on adverts telling people they need to sign up to expensive bookkeeping packages.
For many people, that simply is not true.
When Does It Start?
For affected taxpayers, Making Tax Digital for Income Tax starts on 6 April 2026.
That means you must start keeping digital records from that date, and your first quarterly update will be due by 7 August 2026, covering the period 6 April 2026 to 5 July 2026.
So although August might sound a long way off, the important date is really 6 April. You need to have a system in place by then.
Who Is Affected First?
The first group affected will generally be sole traders and landlords with qualifying income over £50,000.
That figure is based on your tax return, not guesswork.
If HMRC thinks you fall into the first wave, you may receive a letter. But whether a letter arrives or not, the obligation still sits with the taxpayer.
Do You Need Expensive Software?
No. Not always.
There is a lot of marketing around MTD at the moment, and most of it points people towards paid software subscriptions.
For some businesses, that may be the right answer.
But for plenty of smaller sole traders, there is a simpler option.
Our Simple Workaround
Here at Helensburgh Accountants, we are helping clients stay compliant with Making Tax Digital for Income Tax at no extra cost within our fixed fee of £399.
How does that work?
If all of your business income and expenses go through one bank account — or at least the vast majority do — then the process can be much simpler than people think.
Each quarter, you send us the relevant bank information and we prepare and submit the quarterly update for you.
That means:
- no new software subscription
- no complicated bookkeeping system
- no panic when the deadlines start approaching
For the right client, it is a simple and practical solution.
What Do You Need in Place?
This only really works if you keep your business activity separate.
That does not mean you need an expensive business bank account.
If you are a sole trader, a separate personal current account used only for business transactions can often do the job perfectly well.
The key point is this:
your business income and expenses need to pass through one account clearly and consistently.
If your business money is mixed in with shopping, holidays, household bills and random transfers, the simple approach becomes much less simple.
Is This Right for Everyone?
No.
If you are VAT registered, have a high volume of transactions, use cash regularly, have multiple income streams, or your records are messy, proper bookkeeping software may still be the better option.
But if you are a straightforward sole trader and your bank account tells most of the story, there is no reason to rush into paying monthly software fees just because a TV advert told you to.
The Main Thing: Don’t Leave It Too Late
Making Tax Digital for Income Tax begins on 6 April 2026.
Your first quarterly deadline may be 7 August 2026, but by then it is too late to start thinking about how you will manage it.
You need a workable system from day one.
Need Help?
If you want a simple, practical way to deal with Making Tax Digital for Income Tax, get in touch with Helensburgh Accountants.
For many clients, we can deal with the quarterly submissions for you as part of our fixed fee of £399 — with no need to sign up to costly software you may not even need.
