Making Tax Digital | Fileo & Co

The biggest change to UK tax in a generation. Are you ready?

Making Tax Digital for Income Tax Self Assessment is here and affects millions of sole traders, landlords and small business owners. Here is what you need to know, and how Fileo & Co can help.

What Is MTD?

A fundamental shift in how you report your income to HMRC.

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) replaces the traditional annual self assessment tax return with a new system of quarterly digital reporting.

Instead of submitting one return per year, affected individuals will need to send HMRC a summary of their income and expenses every quarter, plus a final end of year declaration, all through HMRC-approved software.

Paper records and manual spreadsheets will no longer be sufficient. Businesses will need to be using compatible digital software from the moment the rules apply to them.

When does it apply to you?

Now In Effect
April 2026
Income over £50,000
Sole traders and landlords with qualifying income above £50,000 must comply from this date.
April 2027
Income over £30,000
The threshold reduces to £30,000, bringing a significantly larger group of self-employed individuals into scope.
April 2028
Income over £20,000
The proposed final phase. At this point the vast majority of self-employed people and landlords will be affected.

What has changed for you?

01
Quarterly Reporting
Instead of one annual return, you will submit income and expense summaries to HMRC four times a year, plus a final year-end declaration.
02
Digital Records Required
You must keep digital records using HMRC-compatible software. Spreadsheets and paper records will not meet the requirements.
03
Compatible Software
All submissions must be made through approved software. We use Xero — fully MTD compatible, easy to use, and included in the price.
04
Earlier Tax Visibility
The upside: you will have a much clearer picture of your tax liability throughout the year, rather than one surprise bill in January.

Let us handle everything.

MTD does not have to be complicated. We will assess your situation, get you set up on the right software, and manage your quarterly submissions so you never have to worry about a deadline.

Assess whether and when MTD applies to you.
Set you up on MTD-compatible software.
Prepare and submit your quarterly updates to HMRC.
Handle your end of year declaration and tax calculation.
Keep you informed throughout so there are no surprises.

April 2026 is here. Are you set up?

If you earn over £50,000 and have not made the switch yet, get in touch today. We will talk you through exactly what needs to happen.

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