Making Tax Digital (MTD) for Income Tax is no longer a future reform on the horizon it becomes a reality from April 2026. For many sole traders and landlords across Oxfordshire and the Thames Valley, this change will significantly reshape how tax information is recorded, managed and submitted.
At MGroup, we pride ourselves on empowering clients with clarity and confidence by investing in long term relationships built on trust and providing expert proactive and personable support at every stage of their journey. This shift toward digital compliance is exactly the type of transition where those values matter most.
Who will be affected?
The first wave of MTD for Income Tax applies to individuals with combined business and property income above £50,000, based on the 2024–25 tax year.
Download or making tax digital guide here including our service offering
Important notes:
- This threshold is calculated on gross income, not profit.
- More taxpayers will fall within scope than many expect.
- A second phase begins in April 2027, extending to those earning more than £30,000.
If your income falls within these thresholds, the way you manage your tax affairs will change significantly.
What does MTD for Income Tax require?
Instead of submitting one annual Self Assessment return, affected individuals must:
- Maintain fully digital records
- Submit quarterly updates to HMRC
- Provide an End of Period Statement
- Complete a Final Declaration
These quarterly submissions summarise income and expenses — meaning that bookkeeping can no longer be a once‑a‑year task.
A behaviour shift, not just a technical one
For many sole traders and landlords, the biggest adjustment will be moving from annual admin to regular, disciplined record‑keeping supported by compatible digital software.
This may mean:
- Updating bookkeeping processes
- Reviewing expense tracking
- Separating property income streams more clearly
- Choosing compliant accounting software
- Ensuring records are complete, accurate and consistently maintained
While the shift may feel significant, it also provides an opportunity to gain clearer, more frequent insight into business performance.
What are the potential benefits?
MTD can help taxpayers:
- Understand income trends earlier
- Predict tax liabilities more accurately
- Avoid last minute surprises
- Strengthen day to day financial control
For many clients, quarterly reporting becomes a tool, not a burden.
What are the risks of delaying preparation?
Those who wait until the deadline risk:
- Errors caused by rushed onboarding
- Missed quarterly deadlines
- Higher compliance costs
- Extra pressure during peak periods
- Reduced time for advisers to provide effective support
Now is the time to act, not when deadlines are already approaching.
Now is the time to act, not when deadlines are already approaching.
Where Our Pillars Matter Most
1. Trust – Confidence through clarity
MTD introduces uncertainty for many business owners. Our role is to remove that uncertainty by giving clear guidance, honest advice and dedicated support.
Darren Green – Partner at The MGroup Partnership
“Clients look to us for reassurance and clarity through changes like this, we help them feel in control, not overwhelmed.
2. Expertise – Navigating complexity with confidence
Understanding thresholds, timings, software choices and reporting obligations is where our technical knowledge becomes invaluable.
Wendy Tatham – Partner at The MGroup Partnership
“The regulations can be complex, but we break them down into practical steps so clients know exactly what they need to do.”
3. Support – Helping you adapt smoothly
Support isn’t just advice, it’s practical, hands on guidance. From software selection to onboarding and quarterly submissions, we help clients adopt a compliant and efficient process.
Ollie Squire – Partner at The MGroup Partnership
“We work closely with clients to get their systems set up properly so they’re confident and ready before deadlines hit.”
Preparing for April 2026 and beyond
With the first phase of MTD just around the corner, preparation is no longer optional — it’s essential. Now is the ideal moment to:
- Check whether you fall within scope
- Assess your current record‑keeping
- Transition to digital processes
- Seek advice early
- Put the right systems and habits in place
This will make the transition smoother and ensure long term compliance.
If you’re unsure whether MTD affects you, if you need help preparing, or if you want clarity on what the change means for your business, we’re here to support you.
Click here to contact the MGroup team today and let’s make sure you’re ready with clarity, confidence and the expert guidance you deserve.