Making Tax Digital, explained

No jargon, no scare tactics. Here’s what’s actually changing and what it means for you.

What it is

HMRC is changing how the self-employed and landlords do their tax. Instead of one big Self Assessment once a year, you’ll send digital updates through the year using software like Relevy. That’s Making Tax Digital for Income Tax, or MTD for short.

Who it affects, and when

It arrives in waves, based on your income:

• April 2027 if your income is over £30,000
• April 2028 if your income is over £20,000

One thing worth knowing: HMRC adds your self-employment and your property income together to work out which side of the line you’re on. So a tradesperson with a rental flat counts both.

What you’ll actually have to do

Three things, and software does the heavy lifting:

• Keep your income and expenses as digital records
• Send HMRC a short update every quarter
• Confirm your figures once at the end of the year

Why it’s less scary than it sounds

If your quotes, jobs and invoices already live in Relevy, the digital records aren’t a separate chore. They’re just there. When an update is due, you check the figures and send them in a tap. No spreadsheet, no shoebox of receipts, no last-minute scramble.

What to do now

Get set up before your date arrives and it becomes part of how you work, rather than a deadline to dread. You can run your books in Relevy for free today and be ready long before you need to file.

Create a free account and get ahead of it.