Be ready for Making Tax Digital, automatically.

Making Tax Digital, in plain English

Making Tax Digital (MTD) is HMRC's programme to move UK tax onto a digital footing. Instead of one annual return compiled from paper records, you keep digital records throughout the year and submit updates through compatible software. It already applies to VAT, and from April 2026 it extends to Income Tax for higher-income sole traders and landlords.

The practical change is twofold: your records must be kept digitally — spreadsheets alone increasingly won't qualify — and you'll submit more often. For Income Tax that means four quarterly updates plus a final declaration, rather than a single Self-Assessment. Software like LedgerlyPro exists to make that rhythm effortless.

Who needs to comply, and when

Even if you're below the threshold today, keeping MTD-ready digital records now means you're never scrambling to comply later — and you get the day-to-day benefits of automated bookkeeping straight away.

How LedgerlyPro keeps you compliant

• Captures income and expenses digitally from bank feeds and receipts
• Stores a digital record of every transaction for the required period
• Keeps your quarterly income and expense totals one click away
• Reminds you before each VAT and Income Tax deadline
• Gives your accountant free read-only access to file on your behalf

The result: when an MTD deadline arrives, the figures are already prepared and your records already meet HMRC's digital standard. There's no year-end reconstruction and no penalty-point anxiety.

Sole trader bookkeeping software · Bookkeeping software UK

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