Making Tax Digital for Income Tax is changing how self-employed people report their income to HMRC. Here is everything you need to know — and how to get ready.
Making Tax Digital for Income Tax Self Assessment (MTD Income Tax) is an HMRC initiative that requires self-employed people and landlords to keep digital records and send regular updates to HMRC throughout the year — instead of one annual Self Assessment return.
Rather than reporting all your income and expenses once a year, you will submit a summary to HMRC every three months, with a final declaration at the end of the tax year.
The aim is to make tax reporting more accurate, reduce errors, and give self-employed people a clearer picture of their tax liability in real time.
Under MTD, you submit a summary of your income and expenses to HMRC four times a year — once per quarter — then make a final declaration at the end of the tax year.
A summary of your total income and total allowable expenses for that quarter. You do not need to submit every individual transaction — just the totals.
Every individual income and expense transaction must be recorded digitally in HMRC-compliant software. These are your underlying records — they must be accurate and kept for at least 5 years.
At the end of the tax year you confirm your total income, claim any additional reliefs, and make your final declaration to HMRC. This is due by 31 January — the same deadline as before.
MTD for Income Tax applies to self-employed sole traders and landlords whose combined gross income from self-employment and property exceeds the threshold.
It does not matter whether you run one business or several — all your self-employment and rental income is added together to determine whether you are above the threshold.
If you are above the threshold and not already using HMRC-recognised software, now is the time to start. Records built up over a full year in the right format will make your first quarterly submission straightforward.
HMRC is introducing a new points-based penalty system for MTD. Rather than an immediate fine for one late submission, you accumulate penalty points over time — but the penalties can still add up quickly.
The best approach is consistent, timely submissions throughout the year — which is exactly what StrideBooks is designed to support.
Stay on top of deadlines with StrideBooksStrideBooks is not a general accounting tool with MTD bolted on. It was built specifically for sole traders who need to meet MTD requirements — and nothing more complicated than that.
StrideBooks is recognised by HMRC for MTD Income Tax, so you can submit your quarterly updates directly from the app.
Never miss a quarterly deadline. StrideBooks tracks your submission windows and sends reminders well ahead of each due date.
See your estimated tax liability update in real time as you record income and expenses — no end-of-year surprise bills.
Connect your business account or upload statements to pull in transactions automatically — keeping your digital records complete without manual entry.
Invite your accountant to review records, check submissions, and collaborate — all within StrideBooks without sharing login details.
Bank-level encryption keeps your financial data safe. Your records are stored in the format HMRC requires for MTD — nothing extra needed.
Straight answers to the questions sole traders are asking right now.
Start building your digital records now. StrideBooks handles the bookkeeping and quarterly submissions so MTD does not become a last-minute scramble.
