Making Tax Digital for Income Tax in Coventry & Warwickshire

Making Tax Digital for Income Tax is now a reality for thousands of sole traders and landlords.

InChart Accounting Limited provides practical MTD Income Tax support for sole traders and landlords across Coventry and Warwickshire. We can help you understand when the rules apply to you, set up compatible accounting software, maintain digital records, prepare your quarterly updates and complete your annual tax return.

Whether you are already required to use MTD from April 2026 or you are preparing for the April 2027 threshold, we can help you put the right system in place before deadlines become a problem.

Do You Need to Use Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax is being introduced in stages according to your qualifying income.

You need to use MTD for Income Tax from:

6 April 2026 if your qualifying income for the 2024/25 tax year was more than £50,000.

6 April 2027 if your qualifying income for the 2025/26 tax year is more than £30,000.

6 April 2028 if your qualifying income for the 2026/27 tax year is more than £20,000.

Qualifying income is broadly your total gross income from self-employment and property before expenses.

If you have both self-employment income and rental income, the qualifying amounts are considered together.

If you are unsure whether MTD applies to you, InChart Accounting can review your position and explain when you need to start.

What Changes Under MTD for Income Tax?

MTD changes the way sole traders and landlords maintain records and report information to HMRC.

Instead of keeping records only for an annual Self Assessment return, you will normally need to:

keep your business and property records digitally
use MTD-compatible accounting software
send quarterly updates to HMRC
keep those records up to date throughout the year
complete your annual tax return using compatible software

The quarterly updates are based on the digital records held in your accounting software.

MTD does not mean that you pay Income Tax four times a year. Your normal Income Tax payment deadlines continue to apply unless HMRC changes your individual payment position.

MTD Income Tax Quarterly Deadlines for 2026/27

For taxpayers using the standard quarterly update periods, the deadlines for the 2026/27 tax year are:

7 August 2026 – first quarterly update

7 November 2026 – second quarterly update

7 February 2027 – third quarterly update

7 May 2027 – fourth quarterly update

Your 2026/27 tax return is then due by 31 January 2028.

HMRC has confirmed that penalty points will not be applied for missing a quarterly update deadline during the 2026/27 tax year.

However, you must still maintain the required digital records and submit the outstanding quarterly updates before you can submit your annual tax return.

This first year therefore gives businesses an opportunity to become familiar with the new system, but it should not be treated as a reason to delay setting up proper digital bookkeeping.

Our MTD Income Tax Service

InChart Accounting can manage the ongoing MTD process for you, rather than leaving you to deal with four additional reporting dates alone.

Our support can include:

MTD eligibility review

We can check your qualifying income and confirm when you are expected to enter MTD for Income Tax.

MTD-compatible software setup

We can help you choose and configure suitable accounting software, including cloud accounting solutions such as Xero and FreeAgent where appropriate.

Digital bookkeeping

We can maintain your income and expense records digitally throughout the year, helping ensure that the information used for your quarterly updates is complete and accurate.

Quarterly updates

We can prepare and submit your quarterly updates to HMRC using compatible software.

Year-end adjustments

Quarterly information may need to be reviewed and adjusted before your final annual tax position is completed.

Annual tax return

We can prepare your annual tax return, including the relevant self-employment or property figures and other information that needs to be reported.

Ongoing support

If your circumstances change during the year, we can help you understand how this affects your MTD and Self Assessment obligations.

MTD for Sole Traders

If you are self-employed, MTD may change the way you currently manage your bookkeeping.

Businesses that previously kept spreadsheets, paper records or prepared their accounts only once a year may need to move to a more regular bookkeeping system.

We can help sole traders in Coventry and Warwickshire establish a simple process that keeps records up to date without creating unnecessary administration.

This can include recording sales and expenses, reconciling bank transactions, reviewing allowable business expenses and preparing the information required for quarterly updates.

MTD for Landlords

Landlords can also fall within MTD for Income Tax.

If your gross property income, either on its own or combined with qualifying self-employment income, exceeds the relevant threshold, you may be required to use the MTD system.

We can assist landlords with digital property income and expense records, quarterly updates and the annual tax return.

This can be particularly useful where you have more than one property or have both rental income and self-employment income.

What if You Have More Than One Business or Source of Income?

Your qualifying income can include income from more than one self-employed business as well as property income.

For example, someone may have:

a self-employed business
a rental property
more than one trade
several rental properties

The total qualifying income may therefore bring you into MTD even where no individual source of income exceeds the threshold by itself.

We can review all of your relevant income sources and help determine your MTD position.

Could You Be Exempt From MTD?

Some people may be automatically exempt from MTD for Income Tax or may be able to apply to HMRC for an exemption.

For example, exemptions can apply in certain circumstances where a taxpayer is digitally excluded or where specific HMRC exemption rules apply.

Being exempt from MTD does not normally remove the requirement to complete a Self Assessment tax return.

If you believe an exemption may apply to you, we can discuss your circumstances and help you understand the relevant HMRC process.

Local MTD Support in Coventry & Warwickshire

InChart Accounting Limited supports individuals and small businesses throughout Coventry and Warwickshire.

We work with clients in areas including:

Coventry
Warwick
Royal Leamington Spa
Kenilworth
Rugby
Nuneaton
and surrounding areas across Warwickshire and the West Midlands.

Our accounting services can be provided remotely using cloud accounting software, by telephone, and through local appointments where appropriate.

You do not need to wait until your first quarterly deadline to prepare for MTD.

Setting up your software and bookkeeping process before you are required to submit updates can make the transition considerably easier.

MTD Income Tax FAQ

What is qualifying income for MTD Income Tax?

Qualifying income is broadly your total gross income from self-employment and property before expenses. HMRC uses the relevant previous tax return to determine when you need to enter MTD.

Do landlords have to use Making Tax Digital?

Yes, landlords can fall within MTD for Income Tax where their qualifying property income, together with any qualifying self-employment income, exceeds the relevant threshold.

Do I still submit a tax return under MTD?

Yes. MTD introduces digital record keeping and quarterly updates, but you still need to complete an annual tax return through compatible software.

Do quarterly updates mean I pay tax every three months?

No. Quarterly updates provide HMRC with summaries based on your digital records. They do not, by themselves, create quarterly Income Tax payment dates.

Can InChart Accounting submit my quarterly updates?

Yes. We can maintain your digital bookkeeping records, prepare the required quarterly updates and support the annual tax return process.

What happens if I missed a quarterly update in 2026/27?

HMRC has confirmed that penalty points will not be applied for late quarterly updates for the 2026/27 tax year. However, outstanding updates still need to be submitted before the annual tax return can be completed.

When should I prepare for MTD if my income is over £30,000?

If your qualifying income for 2025/26 is more than £30,000, you are expected to enter MTD from 6 April 2027. It is sensible to arrange your accounting software and digital bookkeeping process before that date.

Get Ready for Making Tax Digital

If you are a sole trader or landlord in Coventry or Warwickshire and Making Tax Digital applies to you now, or is likely to apply from April 2027, now is the right time to prepare.

InChart Accounting Limited can help you understand your start date, organise your bookkeeping, set up compatible software and manage your quarterly and annual reporting.