Digital records.
Keep business income and expenses in MTD-compatible software. A spreadsheet may need bridging software.
What Making Tax Digital means for you.
Keeping receipts and invoices together is part of getting ready for tax. Here is when MTD for Income Tax applies, what you need to do and how Kwilo can help prepare the records.
Record preparationIncome Tax MTDOne self-employment source
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax changes how some self-employed people and landlords keep records and report income to HMRC. Records must be kept digitally and updates sent through compatible software or an authorised agent.
Quarterly updates spread the record-keeping across the year. You still need to check the figures and keep the receipts or other evidence behind them.
When do you need to start?
HMRC is phasing MTD for Income Tax in by qualifying income. Use the figures below as a guide and check the latest HMRC guidance.
April 2026
> £50k
Now in effect above £50,000.
If your qualifying self-employment or property income for 2024–25 was over £50,000, you have needed to use MTD from 6 April 2026, unless exempt.
In effectApril 2027
> £30k
Extends above £30,000.
If your qualifying income for 2025–26 is over £30,000, you need to use MTD from 6 April 2027.
Next upApril 2028
> £20k
Extends above £20,000.
People with qualifying income over £20,000 come into scope from 6 April 2028, unless exempt.
ConfirmedTBC
≤ £20k
No start date below £20,000.
Not currently required to join by income threshold. Keeping clear digital records now can reduce later preparation, but check the supported workflow you need before relying on any software.
OptionalWhat MTD requires from you.
Keep digital records and make sure quarterly updates and the tax return are sent through compatible software or an authorised agent.
Quarterly updates.
Use compatible software or an authorised agent to send quarterly summaries of income and expenses to HMRC.
Tax return.
Once a year, confirm the figures, add anything else that belongs on your tax return, and submit it by the usual deadline.
Compatible software.
Use the software or authorised agent responsible for sending your updates and tax return to HMRC.
What can Kwilo help me prepare?
Start with the income, expenses and receipts you have already recorded. Kwilo shows the tax year so far and what needs attention, so you can review the figures without piecing the records together again.
- Keep records as you work
Income, expenses and receipts stay together.
- Check the period
See what is ready and what still needs attention.
- Fix what is missing
Add receipts, categories or other details.
- Take the records to whoever files for you
Use your accounting package, compatible software or authorised agent.
Check the figures before using them. Kwilo does not currently file quarterly updates or Final Declarations with HMRC.
Can I use Kwilo for this?
This record preparation is for sole traders with exactly one supported self-employment source. It does not cover landlord or property-income MTD. Check the fit with your accountant if you are unsure.
Who sends the figures?
Use your connected accounting package, another compatible software route or an authorised agent to send quarterly updates and complete the tax return. Check current HMRC guidance for deadlines and penalties.
Questions about MTD.
I’ve had an accountant for years. Does this change anything?
Invite the accountant or bookkeeper you already use into Kwilo as an Advisor, or connect Xero, QuickBooks or FreeAgent and continue working there. Kwilo prepares the records for review; your accounting package or authorised agent remains responsible for filing.
What counts as “income” for the threshold?
Your total qualifying gross income from self-employment and property, before expenses, is used for the threshold. HMRC uses the qualifying income reported on the relevant tax return to decide when you must start. Check the current guidance if you have more than one income source.
Do I need to send an update for a quiet period?
A quiet period may still need a quarterly update. Kwilo helps sole traders with one supported self-employment source prepare their records, but it does not currently send the update to HMRC. Check the requirement with the software provider or authorised agent that handles your filing.
What about VAT MTD — is that the same thing?
No. MTD for VAT and MTD for Income Tax are separate regimes with separate rules. Support for one does not mean the other is supported, so check the workflow you need.
What if I’m below the threshold?
You are not currently required to join based on the published income thresholds. You can still keep digital records now, but future eligibility, dates and software support can change, so check the workflow that applies when your wave approaches.
Does Kwilo support landlord or property-income MTD?
No. Kwilo’s Income Tax MTD support is currently limited to preparing records for sole traders with one supported self-employment source. Landlords and people with property income need compatible software or an authorised agent that supports their circumstances.
Can HMRC see my bank account?
Quarterly updates contain summary figures for income and expenses rather than your bank balance. The software or authorised agent that handles your filing determines what is sent, so review the figures and current HMRC guidance before submission.
Not tax adviceThis page explains MTD in plain English, checked against HMRC guidance on 29 August 2026. Rules and dates can change — always check gov.uk/making-tax-digital or speak to your accountant for advice on your specific situation.
See whether Kwilo fits your business.
Kwilo helps with the everyday work behind these records too: customers, quotes, jobs, invoices and expenses. Check what is included and what it costs.