If you’re a sole trader or landlord, you’ve probably heard the phrase “Making Tax Digital” doing the rounds. At Conway & Partners, we’re helping clients across Oxford get to grips with what it actually means. So here’s the short version:
Why was it introduced?
Making Tax Digital (MTD) is HMRC’s push to modernise the UK tax system. The old way of doing things wasn’t working well. Paper records. One annual tax return. Too much guesswork along the way. This left plenty of room for error. In fact, HMRC estimates it loses significant revenue each year simply because returns contain mistakes. So MTD aims to close that gap. It does this by moving record-keeping online and closer to real time.
What is it designed to do?
Instead of filing one big return at year-end, MTD asks you to keep digital records throughout the year. You’ll also send quarterly updates to HMRC using approved software. A final annual declaration is still required. But the quarterly rhythm makes a real difference. It helps catch errors early. It gives you a clearer picture of your tax position. And it means fewer nasty surprises come January.
Who does it target?
MTD for Income Tax became mandatory from 6 April 2026. This applies to sole traders and landlords with qualifying income above £50,000 (gross self-employment and property income combined). The threshold then drops to £30,000 from April 2027. It drops again to £20,000 from April 2028. So, many more people will be brought into scope over the next couple of years.
Do you need new software?
Not necessarily. Are you comfortable working with spreadsheets? Then there’s no need to give them up. Bridging software can link your spreadsheet directly to HMRC’s systems. This keeps you compliant, without a big change to how you work. We can help you set this up too, so you stay on top of MTD in a way that suits you.
Getting ahead of it
Are you close to these thresholds? Then now is the time to review your record-keeping and software. The transition doesn’t have to be stressful. With the right support, it’s simply a new routine.
Conway & Partners helps sole traders and landlords across Oxford prepare for Making Tax Digital with confidence. Get in touch to find out where you stand.
Need advice tailored to your situation? Talk to our Oxford team.