Making Tax Digital for Income Tax: What It Means for You (and How Bidwell Accountancy Has You Covered)

Posted on 25th March 2026

If you’re self-employed or earning income from property, you’ve probably heard increasing talk about Making Tax Digital (MTD). But what does it actually mean for you—and do you need to take action?

At Bidwell Accountancy, we’re already helping our clients stay ahead of these changes, ensuring they are fully prepared well before the deadlines arrive.

What is Making Tax Digital (MTD)?

Making Tax Digital is HMRC’s initiative to modernise the UK tax system by moving it fully online. The aim is simple:

Reduce errors

Improve accuracy

Make tax reporting more efficient

MTD is already in place for VAT-registered businesses. The next phase—Making Tax Digital for Income Tax (MTD for ITSA)—will directly affect sole traders and landlords.

Who Will Be Affected?

From April 2026, MTD will apply if you:

Are a sole trader or landlord

Submit a self-assessment tax return

Have qualifying income over £50,000

This will impact a wide range of individuals, including:

Tradespeople

Freelancers

Contractors

Property investors and landlords

Key MTD Deadlines You Need to Know

The rollout is being introduced in stages:

From 6 April 2026 → Income over £50,000 must comply

From 6 April 2027 → Income over £30,000 must comply

Future plans → Threshold expected to reduce to £20,000

If your income is growing, it’s likely you’ll fall into MTD sooner than you think.

What Will You Need to Do?

Under MTD for Income Tax, you’ll be required to:

Keep digital records of your income and expenses

Use HMRC-approved software (such as Xero)

Submit quarterly updates to HMRC

Complete a final year-end declaration

This is a big shift from the traditional “once-a-year” tax return—and it’s where many businesses can get caught out if they’re not prepared.

The Good News: You May Already Be Closer Than You Think

At Bidwell Accountancy, Milton Keynes, we’ve taken a proactive approach.

✅ Our clients are already set up for Making Tax Digital

✅ We use leading cloud software like Xero to ensure compliance

✅ We’ve built systems that make quarterly reporting seamless

This means that for many of our clients, MTD isn’t a future problem—it’s already handled.

Why Acting Early Matters

Leaving MTD preparation until the last minute can lead to:

Missed deadlines

Incorrect submissions

Unnecessary penalties

Stress and confusion

By getting set up early, you gain:

Real-time visibility over your finances

Better tax planning opportunities

More control over your business

How Bidwell Accountancy Can Help

We don’t just “tick boxes”—we help you understand your numbers and stay compliant with confidence.

Our MTD support includes:

Full setup of cloud accounting software

Migration from spreadsheets or manual records

Ongoing quarterly submissions

Tax planning and advisory to reduce liabilities

Clear, jargon-free support whenever you need it

As a Milton Keynes-based accountancy firm, we work closely with local businesses while also supporting clients across the UK.

Final Thoughts: Don’t Wait Until It’s Too Late

Making Tax Digital is one of the biggest changes to the UK tax system in recent years. But with the right systems—and the right accountant—it doesn’t have to be complicated.

At Bidwell Accountancy, we’ve already done the hard work so you don’t have to.