Making Tax Digital (MTD) for Income Tax
Support in Powys, Welshpool & Mid Wales
Making Tax Digital (MTD) is one of the biggest changes to the UK tax system in years — and it’s coming into force for many sole traders and landlords from April 2026. Whether you’re based in Welshpool, Llanfair Caereinion, Meifod or anywhere across Mid Wales, ASW Accountancy is here to make the transition simple, stress‑free, and fully compliant.
What is Making Tax Digital?
Making Tax Digital is a UK government initiative designed to modernise how tax information is recorded and submitted. As the guide explains, MTD aims to “make it easier for individuals and businesses to keep accurate tax records and submit information to HMRC in real time using digital tools” .
Under MTD for Income Tax, those who qualify must:
Keep digital records of income and expenses
Use HMRC‑approved software
Send quarterly updates to HMRC
Submit a final declaration each year to confirm total taxable income
Importantly, MTD is not a new tax — it simply changes how you keep records and report them.
Who Does MTD Apply To?
MTD for Income Tax applies to:
Sole traders (self‑employed individuals)
Landlords with UK or overseas property income
Your combined qualifying income (before expenses) determines when you must join. The guide states that qualifying income includes “income from self‑employment” and “income from UK or overseas property” .
MTD Start Dates
You must join MTD if your qualifying income exceeds:
£50,000 from 6 April 2026
£30,000 from 6 April 2027
£20,000 from 6 April 2028
These thresholds apply to your most recently submitted tax return before the relevant tax year.
If your income is below these levels, or you only receive PAYE‑taxed income, you won’t be required to join yet.
What You’ll Need to Do Under MTD
MTD introduces a new digital reporting process. According to the guide, taxpayers must keep digital records including “amounts and dates of income received”, “amounts and dates of expenses paid”, and “category of expense” .
Quarterly Updates
Instead of one annual tax return, you’ll submit four quarterly updates summarising:
Total income
Total expenses
Profit or loss
These are submitted through MTD‑compatible software. Deadlines follow a fixed pattern (e.g., 6 April–5 July quarter due 7 August) .
Final Declaration
At year‑end, you’ll:
Add any other income
Claim allowances
Confirm all figures
This replaces the traditional Self Assessment return for those in MTD.
How ASW Accountancy Can Help
MTD can feel overwhelming — especially for rural businesses, landlords, and sole traders who may not be used to digital record‑keeping. ASW Accountancy is here to make the process smooth and stress‑free.
As the guide says, “we’re committed to making tax simple, friendly, and efficient so you can focus on what really matters – your business” .
Our MTD Support Includes:
Checking if and when MTD applies to you
Recommending and setting up the right HMRC‑compatible software
Helping you keep digital records up to date
Preparing and submitting quarterly updates
Completing your final declaration
Liaising with HMRC on your behalf
Explaining everything in plain English
Whether you’re a landlord in Welshpool, a sole trader in Llanfair Caereinion, or running a rural business anywhere in Powys, we’ll guide you every step of the way.
FAQs
Is MTD a new tax?
No — the guide confirms that “MTD does not introduce a new tax or change how much tax you pay” . It only changes how you keep records and report them.
Do I still pay tax at the same time?
Yes. You’ll still pay by:
31 January (balancing payment + first payment on account)
31 July (second payment on account)
Are there penalties?
HMRC has postponed penalties until 6 April 2027, giving taxpayers time to adjust. After that, a points‑based system will apply .
Does MTD apply to partnerships?
Not yet — separate rules and start dates apply.
Download Our Free MTD Guide
We’ve created a clear, practical guide to help you understand exactly what MTD means for you, when it starts, and what you need to do.