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Making Tax Digital is changing how you report income to HMRC. Our accountants help you stay compliant, reduce administrative work and manage your tax affairs with confidence.
MTD for Income Tax is already mandatory for many self-employed individuals and landlords. From April 2027, thousands more taxpayers will be required to maintain digital records and submit quarterly updates to HMRC.
Whether you need help registering for MTD, selecting compatible software, submitting quarterly updates or managing your annual tax return, Naail & Co Chartered Certified Accountants & Tax Advisors can provide the professional support you need.
We combine digital accounting expertise with practical UK tax advice, so your MTD obligations are managed as part of your wider accounting and tax affairs.
MTD for Income Tax is HMRC’s digital reporting system for eligible sole traders and landlords. It requires taxpayers to maintain digital income and expense records, submit quarterly updates and complete an annual tax return using compatible software.
Our MTD for Income Tax accounting service helps you meet these obligations, maintain accurate records and manage your tax reporting throughout the year.
The real challenge is not simply submitting figures to HMRC four times annually. It is ensuring that your bookkeeping is reliable, your financial information is classified correctly, deadlines are met and your final tax position is properly reviewed.
At Naail & Co, we provide coordinated accounting, bookkeeping and tax advisory support, rather than treating Making Tax Digital as an isolated software exercise.
Making Tax Digital for Income Tax is being introduced in stages, based on qualifying income from self-employment and property.
| Mandatory start date | Qualifying income | Relevant tax year |
|---|---|---|
| 6 April 2026 | More than £50,000 | 2024/25 |
| 6 April 2027 | More than £30,000 | 2025/26 |
| 6 April 2028 | More than £20,000 | 2026/27 |
Qualifying income generally means your combined gross self-employment and property income before deducting expenses.
For example, if you receive £29,000 in self-employment income and £25,000 in gross rental income, your combined qualifying income is £54,000. If these figures appeared on your 2024/25 tax return, you would generally have been required to join MTD from April 2026, unless an exemption or special rule applies.
Before spending money on software or changing your bookkeeping, you need to understand exactly when and how MTD applies.
We can assist with:
This is particularly useful if HMRC has contacted you, your income is close to the relevant threshold or you are preparing for the April 2027 expansion.
Our priority is to establish your obligations accurately before recommending further work.
| Quarterly update | HMRC deadline |
|---|---|
| First update | 7 August |
| Second update | 7 November |
| Third update | 7 February |
| Fourth update | 7 May |
Under Making Tax Digital, eligible taxpayers generally need to submit four quarterly updates for each relevant self-employment or property business.
We can manage the agreed preparation, review and submission work on your behalf.
Depending on your engagement, our service may include:
For the first mandatory cohort, the next quarterly update is due on 7 November 2026.
Quarterly updates are cumulative and are not separate annual tax returns. They do not automatically establish your final tax liability.
We can help ensure your reporting process is properly organised and that responsibilities are clear before each deadline.
Accurate quarterly reporting depends on accurate bookkeeping.
If records are incomplete or transactions are incorrectly categorised, those issues can affect later updates and annual tax calculations.
Naail & Co can provide ongoing bookkeeping services or work with records you maintain yourself.
Depending on your requirements, we can assist with:
Some clients prefer to handle day-to-day bookkeeping themselves. Others want their accountant to manage the process.
We can discuss the most appropriate arrangement for your circumstances and agree the responsibilities in advance.
For the 2026/27 tax year, the annual MTD tax return is due by 31 January 2028.
This is an important distinction: software can submit financial data, but proper tax reporting requires an understanding of the relevant legislation and your wider personal circumstances.
Making Tax Digital does not eliminate the annual Income Tax return.
Your quarterly updates record financial information throughout the year, but the final tax calculation may require additional adjustments, allowances, claims and other income details.
Our annual tax return service can include:
If you have already missed a quarterly update or your digital records are not ready, addressing the problem promptly is important.
We can review the position and advise on the work required to bring your arrangements up to date.
This may involve reconstructing bookkeeping information, reviewing incorrect transactions, completing outstanding updates or resolving software and HMRC authorisation issues.
HMRC will not award late-submission penalty points for quarterly updates relating to 2026/27. However, the updates remain compulsory, and penalties can still apply to late annual tax returns and late tax payments.
Fallen behind with MTD reporting?
Speak with our accountants about your outstanding obligations and the steps required to resolve them.
| Your circumstances | Support available from Naail & Co |
|---|---|
| You maintain your own digital bookkeeping | Quarterly review and filing support |
| You are joining MTD for the first time | Eligibility, registration and software setup |
| You want ongoing bookkeeping assistance | Digital records, reconciliations and quarterly reporting |
| You need comprehensive MTD support | Bookkeeping, quarterly updates and annual tax returns |
| You have complicated personal tax affairs | MTD compliance coordinated with additional tax advisory services |
| You want to change accountants | Assistance with transferring records, authorisation and reporting responsibilities |
If you are self-employed, quarterly digital reporting may create significant additional administration, particularly if you previously prepared your accounts only once a year.
We support consultants, contractors, freelancers, tradespeople and other sole traders with digital bookkeeping, reporting obligations and annual tax compliance.
Where you operate multiple businesses, we can assess the reporting requirements and help establish appropriate records for each activity.
Landlords often face accounting complications that are not immediately obvious from the general MTD rules.
You may own several properties, receive income through letting agents, have jointly owned investments or incur expenditure requiring particular tax treatment.
We provide property accounting and tax support that considers MTD requirements alongside rental expenses, finance cost restrictions, ownership arrangements and annual tax calculations.
You may become subject to MTD because your combined rental and trading income exceeds the relevant threshold, even if neither source exceeds it individually.
We can assess your income sources and establish how the corresponding records and submissions should be managed.
Operating a limited company does not automatically bring its Corporation Tax affairs into MTD for Income Tax.
However, if you personally receive qualifying rental or self-employment income, MTD may apply to you as an individual.
Naail & Co can consider these obligations alongside your wider personal and business tax affairs.
Where your affairs involve multiple activities, UK and overseas property income, changing business arrangements or additional taxable income, MTD compliance may need to be coordinated with a broader tax review.
Our accounting and tax advisory services allow us to consider these matters together, subject to the agreed engagement.
Naail & Co is a London-based firm of Chartered Certified Accountants and Tax Advisors.
Our work covers personal taxation, business accounting, landlord taxation and specialist tax advisory matters.
This wider professional experience is relevant because MTD submissions must ultimately form part of a complete and accurate annual tax position.
Submitting quarterly information is only one part of MTD compliance.
We can also assist with the accounting records, reporting processes, tax calculations and professional reviews that sit behind those submissions.
This provides an opportunity to coordinate the different elements of your tax affairs rather than relying on disconnected services.
We work with established cloud accounting software and digital bookkeeping processes, including Xero.
Our approach focuses on implementing accounting arrangements that are suitable for your transactions, reporting responsibilities and preferred level of involvement.
Not every taxpayer requires a fully managed accounting service.
We discuss your existing systems, the condition of your records, your income sources and your requirements before recommending a suitable arrangement.
The agreed engagement establishes the work Naail & Co will undertake and the responsibilities you retain.
Naail & Co operates from Lambeth, London, and supports clients throughout the UK.
Whether you are looking for an MTD accountant in London or prefer to manage your accounting remotely, we can discuss the arrangements that best suit your circumstances.
Book a free initial consultation to explain your circumstances, the help you need and any immediate MTD concerns.
This introductory discussion allows us to understand the potential engagement and explain the appropriate next steps.
Where professional work is required, we identify the relevant information, review requirements and establish the services you need.
You receive details of the proposed work and applicable professional fees before proceeding.
Once appointed, we assist with the agreed software, record-keeping, HMRC authorisation and reporting arrangements.
We also explain when information must be provided and which responsibilities remain with you.
As your business or property affairs change, additional accounting or tax advice may be appropriate.
We can discuss further professional assistance where your circumstances require it.
Making Tax Digital is often described as a software change. In practice, the quality of the underlying accounting and tax information remains critical.
The transitional penalty treatment for 2026/27 does not remove the obligation to maintain digital records, submit quarterly updates or complete the annual tax return.
A reliable MTD arrangement should address these issues from the outset, rather than waiting until the annual tax return is due.
Yes. The initial consultation is a free introductory discussion to understand your circumstances, identify the assistance you require and explain the next steps. Detailed tax advice, technical reviews, calculations and implementation work are charged separately where appropriate, with fees agreed in advance.
Get clarity on your obligations, put the right accounting arrangements in place and avoid unnecessary last-minute reporting problems.
Whether you are already subject to MTD, preparing for April 2027 or looking for an accountant to manage your ongoing quarterly updates and annual tax returns, Naail & Co can help.
We provide professional accounting and tax support tailored to your circumstances, from initial software and HMRC arrangements through to ongoing reporting and advice.
Your first step is a discussion about what you need, how we may be able to assist and what any chargeable professional work would involve.
Get in touch with Naail & Co to book your free initial consultation.
Naail & Co Chartered Certified Accountants & Tax Advisors
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