Making Tax Digital (MTD) Accountants
As your MTD accountants, we handle the complexity of MTD for Income Tax on your behalf from determining your scope and registering with HMRC to submitting quarterly updates, integrating software, and filing your Final Declaration. Your compliance is our responsibility.Â
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Are You in Scope for MTD?
Making Tax Digital for Income Tax started in April 2026 and expands to more taxpayers each year. Check the table below to see if you’re in scope now or will be soon and when you need to register.Â
| Phase | Qualifying Income | Assessed From | Mandatory From |
|---|---|---|---|
| Phase 1 | Over £50,000 | 2024/25 tax return | 6 April 2026 |
| Phase 2 | Over £30,000 | 2025/26 tax return | 6 April 2027 |
| Phase 3 | Over £20,000 | 2026/27 tax return | 6 April 2028 |
Qualifying income is your gross income from self-employment and property combined, before any expenses or allowances. For example, if you earned £27,000 from sole trading and £26,000 from rental properties in the 2024/25 tax year, your qualifying income was £53,000 which put you in scope from April 2026, even though neither income source alone crossed the threshold.
Making Tax Digital For Income Tax Self-Assessment​
Making Tax Digital is mandatory for landlords and sole traders above certain income thresholds. Here’s what you need to know.Â
Why Sterling & Wells?
You don’t need to do MTD alone. Here’s why landlords and sole traders across the UK choose Sterling & Wells as their Making Tax Digital Accountants.
End-to-End MTD Compliance Management
We handle your complete MTD journey from registration with HMRC, digital record keeping, quarterly updates and Final Declaration submissions. You focus on your business; we ensure full compliance.
Property and Self-Employment Tax Experts
We specialize in the exact tax scenarios MTD affects most rental income, mixed property portfolios, sole trader businesses, and combined income streams. Our focused expertise means better advice and fewer mistakes.
Expert Knowledge of HMRC MTD Rules
MTD rules get updated regularly. We stay on top of every HMRC update, deadline extension, and compliance requirement so you receive accurate, reliable guidance that keeps your penalty-free throughout the year.
Software Selection Guidance and Setup
We assess your needs, recommend the best HMRC-approved solution for your situation, and handle the complete setup and integration. Having built our own MTD software Rentalbux, we understand what works for different business types.
What MTD for Income Tax Requires:
Under the new regime, you must fulfill three core obligations if you’re in scope. Each requires MTD-compatible software and timely submissions.Â
You must record all income and expenses from your self-employment and property businesses digitally using HMRC-recognized MTD-compatible software throughout the year. Manual records and basic spreadsheets alone won’t meet the requirements. If you prefer spreadsheets, bridging software can be used to make your submissions MTD-compliant.Â
You must submit four quarterly updates per year for each business. Self-employment and property income are reported separately, with all UK properties treated as one business and all foreign properties as another. For example, if you have a sole trader business and five UK rental properties, you’ll submit eight updates per year meaning four for the business and four for the property portfolio.Â
The Final Declaration replaces your Self Assessment tax return and covers all your income, both MTD-mandated sources (self-employment and property) and non-mandated income (employment, pensions, investments). It must be submitted by 31 January following the tax year. This is where you claim capital allowances, tax reliefs, losses carried forward, and other adjustments to determine your final tax liability.
Meet Our Team
Introducing the specialists committed to ensuring
your success and helping you thrive in the UK market.
What We Offer
Specialist MTD compliance services for landlords with residential, commercial, or mixed property portfolios. We manage quarterly submissions, optimize expense claims, and ensure correct reporting across UK and foreign properties keeping you compliant and penalty-free.Â
MTD for Residential Landlords
Multiple buy-to-lets? We handle quarterly submissions for your entire portfolio, ensuring every property expense is claimed correctly.
MTD for Commercial Landlords
Commercial property income has different MTD rules. We ensure your business tenancies, lease structures, and rent reviews are reported correctly.
MTD for Joint Landlords
Co-owning property creates dual MTD obligations. We manage both owners' submissions and ensure correct income allocation between you.
MTD for Landlords With Mixed Property Income
Residential and commercial properties need separate quarterly reporting. We keep both income streams organized.
MTD for UK Resident Landlords With Foreign Property
Overseas rental income requires separate reporting with currency conversions and foreign tax considerations.
MTD for UK Landlords With UK Property Income
Straightforward UK rental portfolio? We manage your quarterly updates and year-end filing so you stay penalty-free.
Dedicated MTD services for self-employed individuals across all trades and professions. We handle quarterly digital reporting, expense tracking, and Final Declaration filing so you avoid penalties and maximize allowable deductions.Â
MTD for Taxi Drivers
Daily fares and high transaction volumes need careful tracking. We handle your mileage, fuel, and vehicle costs for accurate quarterly filing.
MTD for Consultants
Project fees, retainers, and expense recharges create varied income patterns. We categorize everything correctly for quarterly MTD submissions.
MTD for Freelancers
Multiple clients and irregular payments make quarterly deadlines challenging. We simplify MTD compliance so you focus on client delivery.
MTD for Doctors
Private practice income alongside NHS earnings creates dual reporting. We separate your self-employment correctly for Final Declaration.
MTD for Barbers
Chair rental, product costs, and tip income create unique accounting. We handle the mix of fixed and variable expenses for your trade.
MTD for Plumbers
Emergency callouts, material markup, and subcontractors make income complex. We categorize revenue streams and expenses for MTD reporting.
MTD for Solicitors
Private practice income with professional expenses and indemnity considerations. We ensure compliant reporting while you focus on billable hours.
MTD for Electricians
Materials, subcontractors, and vehicle expenses vary job-to-job. We track your costs and ensure every deductible reduces your tax bill.
MTD for Architects
Long projects and staged payments don't align with quarterly deadlines. We manage accruals and timing for accurate HMRC submissions.
MTD for Personal Trainers
Client packages, equipment, and studio rentals fluctuate monthly. We track expenses and keep quarterly MTD submissions accurate year-round.
MTD for Airbnb Hosts
Short-term rental platforms have specific MTD rules. We track booking fees, cleaning, and property expenses for quarterly compliance.
What Happens if You Miss Deadlines
You receive one penalty point for each missed quarterly update or Final Declaration deadline. Once you reach 4 points, you’ll receive a £200 penalty and another £200 penalty for each subsequent deadline you miss. Points only reset when you achieve 12 consecutive months of on-time submissions and clear all outstanding returns from the previous 24 months.Â
In your first year under MTD penalties, you have 30 days from the payment due date to either pay in full or contact HMRC to set up a payment plan before penalties apply. From your second year onwards, this drops to 15 days.Â
Penalty structure:Â
Days 1-15:Â No penaltyÂ
Days 16-30: Penalty of 3% (for 2026/27 tax year) or 4% (for 2027/28 onwards) of tax owed at day 15 (waived in your first year under MTD)Â
Day 31+:Â Additional 3% or 4% penalty on tax owed at day 30, plus 10% per annum daily interest on outstanding amountÂ
The penalty percentage depends on which tax year the payment relates to, not when you joined MTD.Â
There are no penalty points for late quarterly updates during the 2026/27 tax year for newly mandated taxpayers. However, you must still submit all quarterly updates before you can file your Final Declaration. Late payment penalties and Final Declaration penalty points still apply.
MTD Income Tax penalty points are completely separate from VAT penalty points. If you’re VAT-registered, you can accumulate points independently on both systems.Â
Note: Late payment penalties and a late Final Declaration penalty apply from the point of mandation regardless of the first-year grace period. The grace period applies only to late quarterly updates.Â
Frequently Asked Questions
Common Making Tax Digital (MTD) Accountants Questions
Does MTD apply to clients who only have employment income?
No. Employment income is outside the scope of MTD for Income Tax. MTD applies only to qualifying income from self-employment and property. A client with solely PAYE income remains under the existing Self Assessment regime.Â
My client received an HMRC nudge letter. What should they do?
Can a client leave MTD once they are in it?
What happens if a client has more than one property business?
Are there penalties for late quarterly updates in the first year?
Can my client use spreadsheets under MTD?
Introducing RentalBux: MTD Software for Landlords & Sole Traders
RentalBux helps landlords and sole traders stay compliant with HMRC while simplifying bookkeeping, expense tracking, invoicing, and quarterly submission, all in one place.
- Designed for Landlords & Sole Traders
- HMRC-Recognised MTD Software
- Quarterly Submissions Made Simple
- Free Until March 2026
