Making Tax Digital for Income Tax: A Simple Guide to Tracking and Submitting Your Figures
Understand what MTD requires, what you need to do, and how to stay compliant without unnecessary complexity or expensive software.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax is a new HMRC requirement that changes how self-employed individuals and landlords record and report their income.
Instead of submitting one tax return per year, you’ll need to:
- Keep digital records of your income and expenses
- Submit updates to HMRC every quarter
- Complete a final declaration at the end of the tax year
This shifts the focus from year-end reporting to ongoing record-keeping throughout the year.
Who needs to follow MTD rule?
Self-employed Individuals
Earning over £50,000 per year.
Landlords
With rental income over £50,000 per year.
The threshold is expected to reduce to £30,000 in 2027 and then £20,000 in 2028. If you fall into these categories, digital records will be mandatory.
What you actually need to do under MTD
The process becomes more structured and ongoing throughout the year.
01
Keep digital records of income & expenses
02
Ensure records are updated regularly
03
Submit quarterly updates to HMRC
04
Complete a final declaration at year-end
Where most people get stuck
In practice, most confusion around MTD comes from applying the rules — not understanding them.
Common issues include:
Not knowing exactly what needs to be tracked
Overcomplicating record-keeping unnecessarily
Feeling pushed towards accounting software
Uncertainty around how submissions actually work
Concern about making mistakes
For those with relatively simple income and expenses, this often leads to using tools or systems that are more complex than needed.
You don’t need a sledgehammer to crack a nut — and you don’t need enterprise-level software for straightforward personal tax.
Do you need accounting software for MTD?
Many providers promote accounting software as the default solution for MTD. However, for straightforward situations, it’s not always necessary.
You can choose a more manual, controlled approach that keeps you in charge of your data:
Keep your records using a spreadsheet
Use bridging software to submit your figures to HMRC
This approach can be more cost-effective and easier to manage — provided it’s set up correctly.
What this system will show you
How to register for Making Tax Digital for Income Tax
What income and expenses you need to track
How to use the Excel template correctly
How to organise your records for quarterly reporting
How to prepare your figures for submission
How to submit your updates using bridging software
How to stay organised throughout the tax year
What this allows you to do
Stay compliant with MTD requirements without unnecessary complexity
Avoid paying ongoing fees for accounting software
Understand exactly what needs to be tracked and submitted
Feel confident managing your own records and filings
Stay organised and in control throughout the year
Is this approach right for you?
This approach is generally best suited to:
Self-employed individuals or landlords
Those with straightforward income and expenses
People who prefer simple systems over complex software
Those looking to avoid ongoing subscription costs
Get started
Not sure if this approach is right for you?
Answer a few quick questions and get a personalised recommendation based on your situation.
- See if a simpler way to handle MTD is right for you
- Takes less than 2 minutes
- Get a personalised result
Frequently Asked Questions
Quick answers to questions you may have. Can't find what you're looking for? Check out our full documentation.
No. For straightforward situations, it is possible to keep records using spreadsheets and submit using bridging software.
Yes. Spreadsheets can be used for record-keeping, provided they are linked to HMRC-compatible software for submission.
Bridging software connects your spreadsheet records to HMRC, allowing you to submit your figures digitally as required under MTD.
From April 2026, it applies to self-employed individuals and landlords earning over £50,000.
This system is designed for straightforward income and expense scenarios. More complex situations may require professional advice.
No. The system is designed to be simple and easy to follow, even if you are new to MTD.