Making tax digital for self-employed businesses

Making Tax Digital (MTD) is changing how self-employed businesses operate. What was once a once-a-year process is becoming a structured, ongoing requirement, with regular reporting to HMRC.

At Watson Knipe, we have taken a proactive approach. We are already working with our clients to put the right systems in place ahead of the first deadlines, ensuring a smooth transition with no last-minute pressure.

What is Making Tax Digital

MTD for Income Tax Self-Assessment requires self-employed individuals and landlords to keep digital records and submit quarterly updates to HMRC using compatible software.

When you need to start using MTD for Income Tax depends on your qualifying income within a tax year. If your self-employment income (or combined rental and self-employment income) exceeds:

  • £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026

Under Making Tax Digital, you will need to:

  • Maintain digital records of income and expenses
  • Submit quarterly updates to HMRC
  • Complete your annual tax return as a final declaration

Quarterly submissions follow a fixed cycle, with deadlines shortly after each three-month period ends.

While reporting becomes more frequent, your final tax position remains confirmed annually, taking into account all other income streams.

Why choose Watson Knipe?

MTD can feel like an additional burden. Our role is to take that burden off your shoulders.

We have built a structured, practical process that works around how you already run your business.

  • Simple record keeping - Whether you use software like QuickBooks or Xero, or prefer spreadsheets, we provide a system that works for you.
  • Accounting Software Setup – If you want to start using accounting software, we can help with setup and training.
  • Quarterly submission management - We review your data, make any necessary adjustments, and submit your updates to HMRC on your behalf.
  • Ongoing guidance and reminders: We track deadlines and prompt you in advance, so you are always prepared.

We don’t just help you meet the requirements. We help you build a more organised, forward-looking approach to your finances.

We work with businesses based in Derby, Nottingham, Leicester and across the UK. If you are interested in finding out more about our company secretarial services, don't hesitate to get in touch with us by calling 01623 490 120 or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..