Making Tax Digital (MTD) is HMRC’s ambitious plan to modernise the UK tax system. It’s designed to make tax more accurate, more efficient, and ultimately more manageable — but let’s be honest: for many small business owners and landlords, it’s going to feel like a big shift.
At EOACC, we’re all about keeping things simple, smart and strategic. So here’s what you need to know — and how Taxdash will make your life a lot easier from April 2026.
What is Making Tax Digital (MTD)?
MTD is about moving away from manual records and one-off tax returns. Instead, it requires people and businesses to:
- Keep digital records of income and expenses
- Use HMRC-recognised software
- Submit updates and returns directly from that software
It’s part of HMRC’s mission to reduce errors and bring tax reporting into the digital age — whether we like it or not!
Who Does Making Tax Digital Apply To?
Making Tax Digital for VAT – Already live
All VAT-registered businesses must:
- Keep digital VAT records
- Use MTD-compatible software (like Xero, QuickBooks)
- File VAT returns through that software
Making Tax Digital for Income Tax (Self-Assessment) – Coming April 2026
This is the big one.
From April 2026, MTD will apply to:
- Self-employed individuals (sole traders)
- Buy-to-let landlords
…who earn more than £50,000 per year (combined self-employment and property income).
From April 2027, that drops to those earning £30,000+.
You’ll need to:
- Keep digital records
- Send quarterly updates to HMRC
- Submit a final End of Period Statement (instead of the annual self-assessment return)
How Taxdash Will Help
Here’s the good news: Taxdash is being built to be the UK’s leading software platform for self-employed individuals and landlords to file their MTD-compliant tax returns — starting April 2026.
Designed by tax experts, built for real people, Taxdash will:
- Link directly with your bank account, so transactions are captured automatically
- Categorise your income and expenses in real-time
- Help you split out property vs business income
- Prompt you when quarterly updates are due
- Generate and submit all the new MTD filings (without the headaches)
- Show your estimated tax bill in real-time so there are no surprises
No spreadsheets, no guesswork, no scrambling in January.
We’re building Taxdash because we’ve seen too many hardworking people stressed out by tax admin — and frankly, HMRC’s systems aren’t built with real humans in mind. This is about taking back control and making tax work for you.
Why Is HMRC Doing This?
- To reduce errors (a big chunk of the tax gap comes from dodgy or inconsistent recordkeeping)
- To give people real-time visibility on their tax position
- To nudge the self-employed and landlords into digital recordkeeping
Whether you’re a fan of it or not, MTD is coming — and if you’re not prepared, it’ll be an admin nightmare.
What You Need to Do Now
If you’re VAT-registered, you should already be MTD-compliant
If you’re self-employed or a landlord:
- Start using digital software now to track your income and expenses
- Get used to keeping things up to date on a monthly or quarterly basis
- Ask your accountant if your current setup is ready for MTD
- Keep your eyes peeled for the official Taxdash launch in 2026
Final Thoughts
MTD isn’t just a software issue — it’s a shift in how we think about managing our businesses and properties. But with the right tools and the right advice, it doesn’t have to be a burden.
At EOACC, we’ll continue to support our clients through every MTD change — and with Taxdash, we’re creating a simple, smart, and stress-free way for self-employed individuals and landlords to stay ahead of the curve.