{"id":19824,"date":"2022-07-22T15:02:21","date_gmt":"2022-07-22T14:02:21","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=19824"},"modified":"2026-06-05T13:22:38","modified_gmt":"2026-06-05T12:22:38","slug":"what-does-making-tax-digital-mean-for-self-employed","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/tax-changes\/what-does-making-tax-digital-mean-for-self-employed\/","title":{"rendered":"What does Making Tax Digital mean for self-employed?"},"content":{"rendered":"\n<p><a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/what-is-making-tax-digital-for-income-tax\/\">Making Tax Digital for Income Tax<\/a> is changing how <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-employed\/\">self-employed <\/a>individuals report their income to <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/hmrc\/\">HMRC<\/a> from April 2026. If your qualifying income exceeds \u00a350,000, you\u2019ll need to keep digital records and submit quarterly updates using MakingTax Digital software. This guide explains who\u2019s affected, when the changes start, and what you need to do to prepare.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-blue m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p><span class=\"notion-enable-hover\" data-token-index=\"0\">Our <strong>Making Tax Digital (MTD) software<\/strong> for landlords and sole-traders with built-in accountant support is now live. <strong>First month for free!<\/strong><br \/>\n<\/span><!-- notionvc: 227cc3b6-c5da-4b2e-bf21-eb65dbbc1eac --><\/p>\n<ul>\n<li>Accountant-led onboarding &amp; support<\/li>\n<li>Simple-to-use software<\/li>\n<li>Affordable pricing options \u2013 from \u00a324.99\/month<\/li>\n<\/ul>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a href=\"https:\/\/taxfix.com\/en-uk\/mtd-for-itsa\/\" class=\"c-button m-large  m-mobile-fullwidth\">Learn more<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Key takeaways for self-employed<\/h2>\n\n\n\n<p>MTD for self-employed \u2013 key requirements:<\/p>\n\n\n\n<p>1. Keep<strong> digital records<\/strong> of all business income and <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/expenses\/\">expenses<\/a><\/p>\n\n\n\n<p>2. Use Making Tax Digital <a href=\"https:\/\/www.gov.uk\/guidance\/find-software-thats-compatible-with-making-tax-digital-for-income-tax\">software recognised by HMRC<\/a><\/p>\n\n\n\n<p>3. Submit<strong> quarterly updates<\/strong> (four times per year)<\/p>\n\n\n\n<p>4. Complete an end-of-period statement annually<\/p>\n\n\n\n<p>5. Submit a <strong>final declaration<\/strong> each tax year<\/p>\n\n\n\n<p>Action plan for self-employed:<\/p>\n\n\n\n<p>6. Check if your qualifying income is <strong>over \u00a350,000 <\/strong>(2026) or \u00a330,000 (2027)<\/p>\n\n\n\n<p>7. Choose Making Tax Digital software before your deadline<\/p>\n\n\n\n<p>8. <a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/how-do-i-sign-up-for-mtd-with-hmrc\/\">Sign up for Making Tax Digital<\/a> for Income Tax via HMRC<\/p>\n\n\n\n<p>9. Start keeping<strong> digital records 6\u201312 months<\/strong> before your start date<\/p>\n\n\n\n<p>10. Set quarterly reminders for<strong> <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/is-there-a-making-tax-digital-mtd-deadline\/\"><strong>submission deadlines<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does Making Tax Digital apply to self-employed?<\/h2>\n\n\n\n<p>That depends on how much you earn. Making Tax Digital for Income Tax is being rolled out in phases,<strong> based on your qualifying income<\/strong> \u2013 that\u2019s the combined gross income from self-employment and property (before expenses). Income from <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/paye\/\">PAYE<\/a> employment doesn\u2019t count towards this threshold<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Who needs to comply and when<\/strong><\/h3>\n\n\n\n<p>\u2022&nbsp; <strong>6 April 2026<\/strong>: qualifying income over <strong>\u00a350,000<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>6 April 2027<\/strong>: qualifying income over <strong>\u00a330,000<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>6 April 2028<\/strong>: qualifying income over <strong>\u00a320,000<\/strong> (planned)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What \u201cqualifying income\u201d means<\/strong><\/h3>\n\n\n\n<p><strong>Qualifying income<\/strong> is your <strong>gross income<\/strong> (before expenses) from self-employment and\/or property. It does not include income from <strong>PAYE employment<\/strong>.<\/p>\n\n\n\n<p><strong>Example:<\/strong> <\/p>\n\n\n\n<p>You have a PAYE salary of <strong>\u00a340,000<\/strong> and self-employment income of <strong>\u00a315,000<\/strong>. Your <strong>qualifying income<\/strong> is \u00a315,000 \u2013 so Making Tax Digital for Income Tax would not apply to you in 2026 or 2027.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Common self-employed scenarios<\/strong><\/h3>\n\n\n\n<p>\u2022&nbsp; \u201cI\u2019m fully self-employed with <strong>\u00a360,000<\/strong> turnover\u201d \u2013 MTD applies from <strong>6 April 2026<\/strong>.<\/p>\n\n\n\n<p>\u2022&nbsp; \u201cI have a PAYE job earning <strong>\u00a345,000<\/strong> and self-employment income of <strong>\u00a325,000<\/strong>\u201d \u2013 Your qualifying income is \u00a325,000. MTD does not apply until the <strong>\u00a320,000<\/strong> threshold in 2028 (planned).<\/p>\n\n\n\n<p>\u2022&nbsp; \u201cI\u2019m self-employed (<strong>\u00a335,000<\/strong>) and also a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/landlord\/\">landlord<\/a> (<strong>\u00a320,000<\/strong>)\u201d \u2013 Combined qualifying income is <strong>\u00a355,000<\/strong>. MTD applies from <strong>6 April 2026<\/strong>.<\/p>\n\n\n\n<p>\u2022&nbsp; \u201cMy self-employment income varies year to year\u201d \u2013 MTD is triggered when your <strong>qualifying income<\/strong> exceeds the threshold in a given tax year. If your income drops below the threshold in a later year, contact HMRC.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>When does Making Tax Digital start for self-employed?<\/strong><\/h2>\n\n\n\n<p>Making Tax Digital for Income Tax is already live for some self-employed people. Your start date depends on your <strong>qualifying income<\/strong>:<\/p>\n\n\n\n<p>\u2022&nbsp; From <strong>6 April 2026<\/strong>: if your qualifying income exceeds <strong>\u00a350,000<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; From <strong>6 April 2027<\/strong>: if your qualifying income exceeds <strong>\u00a330,000<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; From <strong>6 April 2028<\/strong>: if your qualifying income exceeds <strong>\u00a320,000<\/strong> (planned)<\/p>\n\n\n\n<p><br>You enter MTD when your qualifying income first exceeds the relevant threshold. HMRC recommends starting to prepare at least <strong>six months<\/strong> before your start date. So if you\u2019re above the <strong>\u00a350,000<\/strong> threshold, now is the time to act.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p>\ud83d\udc49 Want to know exactly when MTD applies to you?<a href=\"https:\/\/taxfix.com\/en-uk\/general-tax-return-guides\/the-making-tax-digital-mtd-timeline\/\"> See our full Making Tax Digital timeline \u2192<\/a><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Quarterly update deadlines<\/strong><\/h3>\n\n\n\n<p>Once you\u2019re in MTD, you\u2019ll need to submit <strong>four quarterly updates<\/strong> each year. Here are the deadlines:<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Quarter 1<\/strong> (6 April \u2013 5 July): due by <strong>7 August<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Quarter 2<\/strong> (6 July \u2013 5 October): due by <strong>7 November<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Quarter 3<\/strong> (6 October \u2013 5 January): due by <strong>7 February<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Quarter 4<\/strong> (6 January \u2013 5 April): due by <strong>7 May<\/strong><\/p>\n\n\n\n<p><strong>Important:<\/strong> you must <strong>sign up<\/strong> for Making Tax Digital for Income Tax via HMRC <strong>before your start date<\/strong>. Don\u2019t wait until your first quarterly deadline.<\/p>\n\n\n<div class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic.png\" width=\"1280\" height=\"2098\" srcset=\"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic-183x300.png 183w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic-625x1024.png 625w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic-768x1259.png 768w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic-937x1536.png 937w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic-1249x2048.png 1249w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_when-do-i-have-to-make-tax-digital_infographic.png 1280w\" class=\"wp-block-image__media\" sizes=\"auto, (min-width: 1000px) 768px, calc(100vw - 48px)\" alt=\"making tax digital\"><\/div>\n\n\n<h2 class=\"wp-block-heading\">What will I need to submit for MTD if I\u2019m self-employed?<\/h2>\n\n\n\n<p>Once Making Tax Digital for Income Tax comes into effect, you\u2019ll no longer use HMRC\u2019s website to file your tax return. Instead, you\u2019ll keep and submit <strong>digital records<\/strong> of your earnings and expenses using <a href=\"https:\/\/taxfix.com\/en-uk\/making-tax-digital\/\"><strong>Making Tax Digital software<\/strong><\/a>.<\/p>\n\n\n\n<p>There are <strong>three<\/strong> things you\u2019ll need to submit:<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Quarterly updates<\/strong> of your income and expenses<\/p>\n\n\n\n<p>\u2022&nbsp; An <strong>end-of-period statement<\/strong> \u2014 one per year for each source of income<\/p>\n\n\n\n<p>\u2022&nbsp; A <strong>final declaration<\/strong> that details all other taxable income (such as <a href=\"https:\/\/taxfix.com\/en-uk\/investor-capital-gains-tax-returns\/trading\/how-much-is-tax-on-investment-income\/\">investments<\/a> and <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/savings-interest\/\">savings interest<\/a>)<\/p>\n\n\n\n<p><br>After each quarterly update, you\u2019ll receive an estimate of the tax due up to that point. You\u2019ll still pay your tax bill on the usual deadlines (<strong>31 January<\/strong> and <strong>31 July<\/strong>). The idea is to help you budget more easily throughout the year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What information goes in quarterly updates<\/strong><\/h3>\n\n\n\n<p>Each quarterly update is a <strong>summary<\/strong> \u2013 not a transaction-by-transaction breakdown. You\u2019ll need to include:<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Total business income<\/strong> for the quarter<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Total allowable business expenses<\/strong> for the quarter<\/p>\n\n\n\n<p>\u2022&nbsp; A <strong>summary by category<\/strong> (not individual transactions)<\/p>\n\n\n\n<p>\u2022&nbsp; Any <strong>adjustments or corrections<\/strong> from previous quarters<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Will I still file a Self Assessment tax return?<\/strong><\/h2>\n\n\n\n<p>Not exactly. Making Tax Digital for Income Tax <strong>replaces the annual <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-assessment\/\"><strong>Self Assessment tax return<\/strong><\/a> for self-employed people and landlords above the income thresholds. Instead, you\u2019ll submit <strong>quarterly updates<\/strong> throughout the year.<\/p>\n\n\n\n<p>However, for the 2025-26 tax year, you\u2019ll still need to file one final self-assessment, since this period isn\u2019t covered by the MTD timeline. This doesn\u2019t have to be stressful. Free self-assessment filing is available if you <a href=\"https:\/\/taxfix.com\/en-uk\/making-tax-digital\/\">subscribe to Taxfix\u2019s MTD Assistance<\/a> or MTD Full Support services.<\/p>\n\n\n\n<p>You\u2019ll also still need to submit a \u201c<strong>final declaration<\/strong>\u201d at the end of each tax year. This is similar to a tax return and covers any other income you have \u2013 such as savings interest, <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/dividends\/\">dividends<\/a>, <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gain\/\">capital gains<\/a>, or PAYE income. Your tax payment deadlines remain unchanged: <strong>31 January<\/strong> and <strong>31 July<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What happens if I miss a quarterly submission deadline?<\/strong><\/h2>\n\n\n\n<p>Missing a quarterly update deadline will earn you a <a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/making-tax-digital-penalties\/\"><strong>penalty point<\/strong><\/a> \u2013 think of it like points on a driving licence. Once you reach a certain number of points (typically four), you\u2019ll receive a <strong>\u00a3200 fine<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How the points system works<\/strong><\/h3>\n\n\n\n<p>\u2022&nbsp; <strong>1 point<\/strong> per late quarterly update<\/p>\n\n\n\n<p>\u2022&nbsp; Points accumulate over <strong>12 months<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>\u00a3200 penalty<\/strong> after reaching the threshold (typically <strong>4 points<\/strong>)<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Points reset<\/strong> after a compliance period<\/p>\n\n\n\n<p>There\u2019s also a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/late-payment-penalty\/\">late payment penalty<\/a> system. Late payers can be fined up to <strong>4%<\/strong> of the outstanding amount. That said, these new penalties are generally less harsh than the current Self Assessment late filing fines.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">Late on your current submission? Need help figuring out how much your penalty will cost? Use our <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/late-tax-return-penalties\/\"><span style=\"font-weight: 400;\">late tax return penalty calculator<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who is exempt from Making Tax Digital?<\/strong><\/h2>\n\n\n\n<p>Most self-employed people will need to comply with Making Tax Digital for Income Tax. However, HMRC does grant <strong>exemptions<\/strong> in certain circumstances.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Digital exclusion exemptions<\/strong><\/h3>\n\n\n\n<p>You may be eligible for an <strong>exemption<\/strong> if:<\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Age, disability, or religious reasons<\/strong> make it impractical to use digital tools<\/p>\n\n\n\n<p>\u2022&nbsp; You live in a <strong>remote location<\/strong> with no reliable internet access<\/p>\n\n\n\n<p>\u2022&nbsp; Your religious society\u2019s beliefs are incompatible with electronic communications<\/p>\n\n\n\n<p>\u2022&nbsp; Other <strong>reasonable grounds<\/strong> apply<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to apply for an exemption<\/strong><\/h3>\n\n\n\n<p>1. <a href=\"https:\/\/www.gov.uk\/contact-hmrc\"><strong>Contact HMRC<\/strong><\/a> and explain your circumstances<\/p>\n\n\n\n<p>2. Provide <strong>evidence<\/strong> if requested<\/p>\n\n\n\n<p>3. HMRC will review your case and notify you of their decision<\/p>\n\n\n\n<p>4. Exemptions may need to be <strong>renewed periodically<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What software is compatible with Making Tax Digital?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Making Tax Digital software does<\/strong><\/h3>\n\n\n\n<p><strong>Making Tax Digital software<\/strong> must be able to:<\/p>\n\n\n\n<p>\u2022&nbsp; Keep <strong>digital records<\/strong> of income and expenses<\/p>\n\n\n\n<p>\u2022&nbsp; Categorise transactions<\/p>\n\n\n\n<p>\u2022&nbsp; Generate <strong>quarterly update summaries<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; Submit updates <strong>directly to HMRC<\/strong> via API<\/p>\n\n\n\n<p>\u2022&nbsp; Maintain an <strong>audit trail<\/strong> for five or more years<\/p>\n\n\n\n<p>\u2022&nbsp; <a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/employed-self-employed-tax\/\">Calculate <strong>tax estimates<\/strong><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Types of Making Tax Digital software<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/accounting-software\/\"><strong>Accounting software<\/strong><\/a>: full-featured platforms for businesses with more complex needs<\/li>\n\n\n\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/blog\/free-bookkeeping-tools-for-small-businesses\/\"><strong>Bookkeeping apps<\/strong><\/a>: simpler tools designed for <a href=\"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/bookkeeping\/what-is-a-sole-trader\/\">sole traders<\/a><\/li>\n\n\n\n<li><strong>Bridging software: <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/can-you-use-excel-for-making-tax-digital\/\">connects existing spreadsheets to HMRC<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/making-tax-digital\/\"><strong>Taxfix Making Tax Digital software<\/strong><\/a>: an <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/accountant\/\">accountant<\/a>-supported option that combines software with expert guidance<\/li>\n\n\n\n<li>HMRC maintains a <a href=\"https:\/\/www.gov.uk\/guidance\/find-software-thats-compatible-with-making-tax-digital-for-income-tax\">full list of compatible software<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to prepare for Making Tax Digital as self-employed<\/strong><\/h2>\n\n\n\n<p>1. Calculate your <strong>qualifying income<\/strong> (self-employment + property, before expenses)<\/p>\n\n\n\n<p>2. Check which <a href=\"https:\/\/taxfix.com\/en-uk\/general-tax-return-guides\/the-making-tax-digital-mtd-timeline\/\"><strong>start date<\/strong><\/a> applies to you based on your income level<\/p>\n\n\n\n<p>3. Research and choose a <strong>Making Tax Digital software<\/strong><\/p>\n\n\n\n<p>4. <strong>Sign up<\/strong> for <strong>Making Tax Digital for Income Tax<\/strong> via <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/hmrc-online-services\/\">HMRC online services<\/a><\/p>\n\n\n\n<p>5. Start keeping <strong>digital records<\/strong> <strong>6\u201312 months<\/strong> before your deadline<\/p>\n\n\n\n<p>6. Set up <strong>quarterly reminders<\/strong> for submission deadlines7. Consider <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\"><strong>professional support<\/strong><\/a> if your tax situation is complex<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">A lot to prepare? Taxfix is here to make your filing as simple and easy as possible.<\/span><a href=\"https:\/\/taxfix.com\/en-uk\/making-tax-digital\/\"> <span style=\"font-weight: 400;\">Find out more about Taxfix Making Tax Digital software \u2192<\/span><\/a><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Get making tax digital advice from Taxfix<\/h2>\n\n\n\n<p>Navigating Making Tax Digital for Income Tax doesn\u2019t have to be stressful. Taxfix connects you with <a href=\"https:\/\/taxfix.com\/en-uk\/my-taxscouts-account\/whats-an-accredited-accountant\/\"><strong>UK-qualified accountants<\/strong><\/a> who can guide you through every step \u2013 from choosing the right software to submitting your <strong>quarterly updates<\/strong>.<\/p>\n\n\n\n<p>Here\u2019s what\u2019s included:<\/p>\n\n\n\n<p>\u2022&nbsp; Making Tax Digital software with built-in <strong>accountant support<\/strong><\/p>\n\n\n\n<p>\u2022&nbsp; <strong>Onboarding help<\/strong> and setup assistance<\/p>\n\n\n\n<p>\u2022\u00a0 <strong>Ongoing support<\/strong> throughout the year<\/p>\n\n\n\n<p>\u2022\u00a0 Affordable pricing \u2013 from <strong>\u00a34.99\/month<\/strong>, <strong>first 3 months free<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently asked questions<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Do self-employed people have to switch to make tax digital?<\/strong><\/h3>\n\n\n\n<p>Yes, if your qualifying income (from self-employment and\/or property) exceeds the relevant threshold. The threshold is <strong>\u00a350,000<\/strong> from April 2026, <strong>\u00a330,000<\/strong> from April 2027, and <strong>\u00a320,000<\/strong> from April 2028 (planned). If you\u2019re below the threshold, you don\u2019t need to comply yet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What does Making Tax Digital mean for self-employed?<\/strong><\/h3>\n\n\n\n<p>It means you\u2019ll need to keep <strong>digital records<\/strong> of your income and expenses, use <strong>Making Tax Digital software<\/strong>, and submit <strong>quarterly updates<\/strong> to HMRC instead of a single annual tax return. You\u2019ll also submit a <strong>final declaration<\/strong> at the end of each tax year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>When does Making Tax Digital start for self-employed?<\/strong><\/h3>\n\n\n\n<p>It depends on your <strong>qualifying income<\/strong>. The start dates are: <strong>6 April 2026<\/strong> (income over \u00a350,000), <strong>6 April 2027<\/strong> (income over \u00a330,000), and <strong>6 April 2028<\/strong> (income over \u00a320,000, planned).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is a self-employed tax return going digital?<\/strong><\/h3>\n\n\n\n<p>Yes. Making Tax Digital for Income Tax replaces the annual <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-assessment\/\">Self Assessment tax return<\/a> with <strong>quarterly updates<\/strong> and a year-end <strong>final declaration<\/strong>. The final declaration covers all your income sources, not just self-employment. However, for the 2025-2026 tax year, you\u2019ll still have to file a self-assessment tax return.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can my accountant submit Making Tax Digital reports on my behalf?<\/strong><\/h3>\n\n\n\n<p>Yes. You can<a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/form-64-8\/\"> <strong>authorise an accountant<\/strong><\/a> or tax agent to submit your <strong>quarterly updates<\/strong> and <strong>final declaration<\/strong> through Making Tax Digital software. Taxfix offers an accountant-supported service that handles this for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What are the new self-employed tax rules?<\/strong><\/h3>\n\n\n\n<p>The main change is <strong>Making Tax Digital for Income Tax<\/strong>, which requires <strong>digital record-keeping<\/strong> and <strong>quarterly reporting<\/strong>. <a href=\"https:\/\/taxfix.com\/en-uk\/blog\/what-is-the-basis-period-reform\/\"><strong>Basis period reform<\/strong><\/a> (which changed how self-employed <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/profit\/\">profits<\/a> are calculated) also came into effect from the 2024\/25 tax year. <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/national-insurance\/\">National Insurance<\/a> rates for the self-employed have also been updated in recent years. Check the latest HMRC guidance for current figures.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How will Making Tax Digital work for self-employed?<\/strong><\/h3>\n\n\n\n<p>You\u2019ll use <strong>Making Tax Digital software<\/strong> to record your income and expenses throughout the year. Every quarter, the software will generate a summary that you (or your accountant) submit to HMRC. At the end of the tax year, you\u2019ll complete a <strong>final declaration<\/strong> covering all your income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What happens if I miss a quarterly submission deadline?<\/strong><\/h3>\n\n\n\n<p>You\u2019ll receive a <strong>penalty point<\/strong>. Once you accumulate enough points (typically four), you\u2019ll be fined <strong>\u00a3200<\/strong>. There are also late payment penalties of up to <strong>4%<\/strong> of the outstanding amount. HMRC may waive penalties if you have a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/reasonable-excuse\/\"><strong>reasonable excuse<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How do I register as self-employed for Making Tax Digital?<\/strong><\/h3>\n\n\n\n<p>You\u2019ll first need to be <a href=\"https:\/\/taxfix.com\/en-uk\/self-assessment-basics\/register-for-self-assessment\/\">registered for <strong>Self Assessment<\/strong><\/a> with HMRC. Once registered, you can <a href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/how-do-i-sign-up-for-mtd-with-hmrc\/\">sign up for <strong>Making Tax Digital for Income Tax<\/strong><\/a> through your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/hmrc-online-services\/\">HMRC online account<\/a>. You\u2019ll need to have chosen your <strong>Making Tax Digital software<\/strong> before signing up.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Do I need an accountant for Making Tax Digital?<\/strong><\/h3>\n\n\n\n<p>No, but it can make things a lot easier, especially if your tax situation is complex. An <strong>accountant<\/strong> can help you choose the right software, set up your records correctly, and make sure your <strong>quarterly updates<\/strong> are accurate. Taxfix offers Making Tax Digital software from <strong>\u00a34.99\/month<\/strong>.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-nude m-align-left\">\n    <div class=\"b-block-body\">\n        <p><i><span style=\"font-weight: 400;\">This article provides general information only and is not personalised tax advice.<\/span><\/i><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n","protected":false},"excerpt":{"rendered":"<p>Making Tax Digital for Income Tax is changing how self-employed individuals report their income to HMRC from April 2026. If your qualifying income exceeds \u00a350,000, you\u2019ll need to keep digital records and submit quarterly updates using MakingTax Digital software. This guide explains who\u2019s affected, when the changes start, and what you need to do to [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[469,466],"tags":[102,476,411],"class_list":["post-19824","post","type-post","status-publish","format-standard","hentry","category-making-tax-digital-mtd","category-tax-changes","tag-hmrc","tag-making-tax-digital","tag-self-employed"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What does Making Tax Digital mean for self-employed? &#8211; Taxfix (formerly TaxScouts)<\/title>\n<meta name=\"description\" content=\"Learn how Making Tax Digital for self-employed works, how to prepare and when everything is due to change. A self-employed manual.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/tax-changes\/what-does-making-tax-digital-mean-for-self-employed\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What does Making Tax Digital mean for self-employed? &#8211; Taxfix (formerly TaxScouts)\" \/>\n<meta property=\"og:description\" content=\"Learn how Making Tax Digital for self-employed works, how to prepare and when everything is due to change. 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