complianceInstitute of Financial Accountants (IFA)

Making Tax Digital in Glasgow — What You Need to Know

Making Tax Digital (MTD) is HMRC's move to digital records and more frequent online filing. MTD for VAT already applies to all VAT-registered businesses. MTD for Income Tax started in April 2026 for sole traders and landlords with qualifying income over £50,000. QA FinTax gets Glasgow businesses compliant — software, digital records and quarterly filing.

Making Tax Digital is the biggest change to UK tax administration in a generation, and it is arriving in stages. The headline is simple: paper and manual spreadsheets are being phased out in favour of compatible software and more frequent updates to HMRC. The detail is where businesses get caught — different rules and dates for VAT and for Income Tax. This page explains both, and links you to the service that fits your situation.

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What Our Making Tax Digital Service Includes

Assessment of whether and when MTD applies to you
MTD-compatible software set up (Xero, QuickBooks, FreeAgent)
Digital record-keeping that meets HMRC's "digital link" rule
Quarterly updates prepared and filed on time
The year-end Final Declaration handled
Support through the transition from annual returns

What Is Making Tax Digital?

MTD requires you to keep your records digitally and to file with HMRC through compatible software, with a "digital link" running from your records to your return — no more retyping figures into the HMRC website. It applies in two separate regimes, with their own rules: MTD for VAT and MTD for Income Tax.

MTD for VAT — Who and When?

This is already live. Every VAT-registered business must keep digital records and file its VAT returns through MTD-compatible software. If you are VAT-registered, you are already in scope. The detail of VAT returns, schemes and deadlines sits on our VAT returns page.

MTD for Income Tax — the Timeline

MTD for Income Tax Self Assessment (ITSA) is being phased in by income level. It applies to sole traders and landlords, measured on gross qualifying income — turnover plus rents, before expenses.

MTD for Income Tax — phased introduction by qualifying income
From	Applies to qualifying income over
April 2026	£50,000
April 2027	£30,000
April 2028	£20,000

Qualifying income is gross self-employment turnover plus gross rental income, before expenses. Once you are in, you stay in even if income later dips.

What Will You Have to File, and When?

MTD for Income Tax replaces the single annual Self Assessment return with quarterly updates plus a year-end Final Declaration.

MTD for Income Tax — standard quarterly update and final deadlines
Filing	Deadline
Quarter 1 update (6 Apr – 5 Jul)	7 August
Quarter 2 update (6 Jul – 5 Oct)	7 November
Quarter 3 update (6 Oct – 5 Jan)	7 February
Quarter 4 update (6 Jan – 5 Apr)	7 May
Final Declaration and tax payment	31 January (following the tax year)

The Final Declaration replaces the old annual return; the separate End of Period Statement (EOPS) was removed, with its role absorbed into the Final Declaration.

How Do We Get You Ready?

We check whether — and when — MTD applies to you
We set up HMRC-recognised software and your digital records (see our cloud accounting page)
We run the quarterly updates so you never miss a deadline
We prepare your Final Declaration in place of the old return
For VAT, we handle your MTD returns as part of the VAT service

Making Tax Digital in Glasgow — Frequently Asked Questions

It is HMRC's programme requiring digital record-keeping and filing through compatible software, with a digital link from your records to your return. It applies to VAT (already live for all VAT-registered businesses) and to Income Tax (phased in from April 2026 by income level).

From April 2026 if your qualifying income — gross self-employment turnover plus rents — is over £50,000; from April 2027 over £30,000; and from April 2028 over £20,000. It applies to sole traders and landlords. We assess exactly when you are caught.

Four quarterly updates due 7 August, 7 November, 7 February and 7 May, then a year-end Final Declaration and tax payment by 31 January. The Final Declaration replaces the old Self Assessment return.

Not the old-style annual return. It is replaced by the quarterly updates and the year-end Final Declaration, which finalises your figures and calculates the tax. We handle the whole cycle, and our self assessment page covers returns for anyone not yet in MTD.

HMRC-recognised software such as Xero, QuickBooks or FreeAgent. Manually retyping figures into the HMRC portal is not allowed — there must be a digital link. We set the software up for you; see our cloud accounting page for how we do it.

Filing outside MTD once it applies to you means penalties, and MTD for Income Tax uses a points-based late-submission system. The practical answer is to get set up ahead of your start date — which is exactly what we do, so the transition is a non-event.

Official sources

Rates and thresholds are stated for the 2026/27 UK tax year and are for general guidance only. They are not a substitute for advice on your own circumstances.