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HMRC recognised · MTD-ready

MTD made simple.

What Making Tax Digital means for you, and how to get ready before HMRC's next deadline catches you out.

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Staying compliant is about to get a lot more complex

What's the real problem?

MTD is HMRC's plan to digitise tax, and it touches the self-employed, landlords, VAT-registered businesses and the accountants who support them. If you're confused, stressed, or still relying on spreadsheets, you're not alone.

Missed deadlines & penalties

HMRC moves to a points-based late-submission penalty system. One missed quarter can quickly become a fine.

Confusing paperwork & errors

Manual records and copy-paste between spreadsheets are exactly what HMRC wants to move you away from.

Hours wasted on records

Chasing receipts, hunting for last quarter's invoice, reconciling rows of transactions, all time you could spend on paid work.

No real visibility

If your numbers live in folders and inboxes, you can't see what's owed or where you stand for tax, until it's too late.

The basics

What is MTD and what's changing?

MTD is rolling out in waves. Here's the schedule that affects most UK businesses, sole traders and landlords.

Apr 2022
All VAT-registered businesses must comply
Apr 2026
Income Tax MTD live for sole traders & landlords earning £50k+
Next deadline
Apr 2027
Threshold drops to £30k
Apr 2028
Threshold drops to £20k
There's a better way

Paper, spreadsheets, or proper software?

Some setups just aren't built for what HMRC now wants.

Paper Spreadsheets Clear Books
HMRC recognised for MTD ✕ ✕ ✓
Files quarterly updates ✕ ✕ ✓
Built-in error checks ✕ ✕ ✓
Works on phone, tablet & laptop ✕ ✕ ✓
Free plan for sole traders ✕ ✕ ✓
Shopping list

What to look for in MTD-ready software.

A short checklist to keep you on the right side of HMRC, whatever kind of business you run.

HMRC recognised

It must appear on HMRC's official list of MTD-compatible software for VAT and Income Tax Self Assessment.

Friendly for non-experts

If you need an accountant just to log in, it isn't the right tool. Look for plain language, not jargon.

Affordable or free

The new rules will catch a lot of sole traders. A genuinely free plan means cost is never the reason a deadline slips.

Role-specific design

What a landlord needs isn't what a VAT-registered business needs. Pick software shaped around how you actually work.

Why Clear Books

Built in the UK, for UK rules.

We've been helping UK businesses stay compliant since 2008, and Clear Books is on HMRC's official list of MTD-compatible software.

  • Submit VAT and Income Tax updates in a few clicks
  • Use it on your phone, tablet or laptop, same data, everywhere
  • Free plan for sole traders, with no timer
  • Invite your accountant or bookkeeper in seconds
  • UK-based support when something doesn't look right
Try Clear Books free → Talk to our team
Quarterly update flow inside Clear Books
Q1 update submitted
HMRC recognised
Pick your path

Find the MTD guide for your situation.

MTD looks a bit different depending on how you earn. Jump to the guide that fits you.

Self-employed

Sole traders preparing for MTD for Income Tax, now live for higher earners.

Read the guide →

Landlords

Track rental income, manage expenses and stay MTD-compliant.

Read the guide →

VAT-registered businesses

Submit MTD VAT returns with full digital links, no bridging duct tape.

Read the guide →

Accountants & bookkeepers

Move every client onto MTD-ready software without losing your evenings.

Read the guide →

Ask our AI assistant

Not sure which situation fits you? Ask our free AI assistant and get an instant, plain-English answer to any MTD question.

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Common questions

MTD, FAQ.

What is Making Tax Digital?
MTD is HMRC's programme to move tax record-keeping and submissions online. It already applies to VAT-registered businesses, and since April 2026 it also applies to sole traders and landlords earning over £50,000.
When does MTD apply to me?
If you're VAT-registered, MTD applies now. If you're a sole trader or landlord, your start date depends on your gross income: April 2026 for £50,000+, April 2027 for £30,000+, April 2028 for £20,000+.
Is Clear Books recognised by HMRC?
Yes, Clear Books appears on HMRC's official list of MTD-compatible software for both VAT and Income Tax Self Assessment.
Do I have to file four times a year now?
For MTD for Income Tax, yes, four quarterly updates plus a final declaration at year-end. With Clear Books, each quarterly submission summarises the income and expenditure already in your digital records, ready for you to review and send.
What happens if I'm not ready in time?
HMRC operates a points-based late-submission system , similar to MTD for VAT. Getting set up early means you never see a point, let alone a penalty.
Get ahead of the next deadline

Make MTD simple, today.

Free for sole traders, from £5/month for everything else. Up and running in under 15 minutes.

Try Clear Books free → See plans & pricing