The UK tax system is undergoing its most significant transformation in decades. MTD for Income Tax — formally known as Making Tax Digital for Income Tax Self-Assessment (ITSA) — is replacing the traditional annual Self-Assessment tax return with a mandatory digital reporting system. Starting 6 April 2026, sole traders and landlords will be required to maintain digital records and submit quarterly updates to HMRC throughout the year.
At CBM Accounting Ltd, we provide a fully managed MTD for Income Tax transition and filing service — handling your software setup, quarterly submissions, End-of-Period Statements, and Final Declaration so that the entire process is completely seamless, compliant, and stress-free.
The HMRC MTD for Income Tax changes represent a fundamental shift in how self-employed individuals and landlords report their income. Under the new system, the once-a-year January rush is gone. Instead, you’ll be required to:
These changes are being introduced in phases based on qualifying income — your gross income from self-employment and property before expenses:
Important: MTD for Income Tax does not currently apply to Limited Companies, which continue to follow Corporation Tax rules until further notice.
If you’re approaching any of these thresholds, now is the time to act — and CBM Accounting is here to make sure you’re fully prepared well before your deadline arrives.
We prepare and submit all four mandatory quarterly updates to HMRC on your behalf, each due within five weeks of the period ending. These updates provide HMRC with a real-time summary of your digital income and expenses — giving you clearer visibility of your projected tax liability throughout the year, rather than an unwelcome surprise every January.
Choosing and correctly configuring the right MTD for Income Tax software is the critical first step. We work with leading HMRC-recognised platforms including Xero MTD for Income Tax and QuickBooks, ensuring your accounting software is fully compatible, properly integrated with your bank feeds, and set up to capture every transaction in an MTD-compliant format. Paper records and standalone spreadsheets alone no longer meet HMRC's standards — we make sure yours do.
At the close of each tax year, we prepare your End-of-Period Statement for every source of business income. This includes all necessary year-end adjustments — such as capital allowances, stock valuations, and accruals — ensuring your finalised figures are accurate before the Final Declaration is submitted.
We consolidate all your income sources — including those outside of the MTD scope such as bank interest, dividends, or PAYE employment income — and submit your Final Declaration to HMRC by the 31 January deadline. This legally replaces your old Self-Assessment tax return and brings together your complete tax position for the year.
HMRC is introducing a new points-based penalty system for late MTD submissions. Under this system, missed quarterly deadlines accumulate penalty points, and once a threshold is reached, financial fines are triggered. We manage your entire filing calendar with strict discipline, ensuring every submission is made on time — so you never accrue points, never face fines, and always remain in good standing with HMRC.
Update Period | Submission Deadline |
Quarter 1: 6 April – 5 July | 7 August 2026 |
Quarter 2: 6 July – 5 October | 7 November 2026 |
Quarter 3: 6 October – 5 January | 7 February 2027 |
Quarter 4: 6 January – 5 April | 7 May 2027 |
Final Declaration | 31 January 2028 |
Missing any of these deadlines under the new points-based system carries real financial consequences. With CBM Accounting managing your submissions, you’ll never miss one.
Making Tax Digital isn’t just a compliance obligation — when managed correctly, it becomes a genuine business advantage. With quarterly reporting in place, you gain a structured, consistent view of your income and tax liability throughout the year, enabling smarter decisions around cash flow, investment, and tax planning.
Don’t let bureaucracy slow down your ambitions. Let CBM Accounting Ltd handle your business registration from start to finish, so you can focus on what you do best — running and growing your business.
Get in touch today for a free consultation and find out exactly which registrations your business needs to operate fully compliantly in the UK.
