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Making Tax Digital: what it actually requires, and what we cannot do

24 September 2026 · 2 min read

Making Tax Digital is easy to mistake for a deadline. It is not. It is a rule about where your records live and what software they are sent from, and getting it wrong is not a late filing — it is a filing that cannot be made.

VAT

HMRC puts it plainly: all VAT-registered businesses should now be signed up for Making Tax Digital for VAT. You no longer sign up yourself; it is automatic.

What it means in practice: if you are VAT registered, you must keep digital records and submit your VAT return through software HMRC recognises. A spreadsheet you retype into the HMRC website is not that.

Income tax

From 6 April 2026, sole traders and landlords whose annual income from self-employment and property is over £50,000 must use Making Tax Digital for Income Tax.

That date has passed. This is in force, not coming.

It requires you, or your agent, to use compatible software to:

  • create, store and correct digital records of your income and expenses
  • send quarterly updates to HMRC
  • submit your tax return and pay by 31 January the following year

Quarterly is the part people underestimate. It is four submissions a year where there used to be one.

What we cannot do

We cannot be your MTD software. Our ledger is Danish — the chart of accounts is in Danish and the amounts are in kroner — and it is not recognised by HMRC. It cannot keep your digital records for VAT or income tax, and it cannot make your submissions.

We are saying that here, on the page, rather than letting you find out at your first quarter.

What we can do

Invoicing, taking payment and chasing late payers do not touch your VAT return or your quarterly updates. Those are separate obligations, met by separate software, and nothing about getting paid through us changes how you file.

So: keep your books where they are. Use this for the invoice, the payment and the chase.

If that changes — if we build a UK ledger and get it recognised — this page will say so, with the date.

Sources: gov.uk — Charge, reclaim and record VAT and gov.uk — Making Tax Digital for Income Tax, both read 24 September 2026.