What Making Tax Digital means
MTD replaces the once a year scramble with records kept digitally all year round. Instead of typing totals into a tax return in January, your software keeps a running record and shares summaries with HMRC as you go.
There are two live parts of MTD: MTD for VAT, which has applied to all VAT-registered businesses since April 2022, and MTD for Income Tax Self Assessment, which is rolling out from April 2026.
How MTD for Income Tax works
- Keep digital records of business income and expenses
- Send HMRC a quarterly update four times a year
- Submit a Final Declaration after the tax year ends
- Pay any tax due by 31 January, as now
Who it applies to
Sole traders and landlords whose qualifying income (gross self-employment plus gross property income) is over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. Limited companies are not part of MTD for Income Tax.
Where Fixxa fits
Fixxa is built with Making Tax Digital in mind. Every quote, invoice and payment you create by voice or WhatsApp becomes a digital record, so your quarterly totals are already there when you need them.