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MAKING TAX DIGITAL

Making Tax Digital for Income Tax simplified with Tide

Stay ahead of the curve with Tide’s HMRC-recognised software. From VAT to the upcoming Making Tax Digital for Income Tax rules, unlock our free, dedicated tools to help your business stay compliant.

Join Tide today and get peace of mind that your tax prep is in safe hands. Plus if you use promo code KATIEMTD we'll give you £50 cashback.

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*If you complete the application between 02/03/2026– 31/03/2026 (inclusive) and spend up to £100 within 30 days of opening an account we’ll give you £50 cashback. Enter code the code 'KATIEMTD' when you sign up. T&Cs apply.

UK app downloads

3M+

UK app downloads

Trustpilot rating

4.4/5

Trustpilot rating

UK SMEs onboarded

750,000+

UK SMEs onboarded

What is Making Tax Digital?

What is Making Tax Digital?

Making Tax Digital (MTD) is part of the UK government’s plan to digitise the tax system. 

Instead of filing annual returns manually, you’ll need to keep digital records and submit tax updates to HMRC using MTD-compatible accounting software, like Tide’s.  

While businesses can already submit VAT returns through MTD, this will soon extend to sole traders and landlords. Those with an income over £50,000 will be affected from April 2026, and those over £30,000 from April 2027.

How does MTD for Income Tax work?

Using MTD bridging software, Tide has built a solution that allows members to connect their business bank account to HMRC seamlessly – saving time and ensuring compliance. Once MTD for Income Tax applies to you, the way you manage your finances will change. You’ll need to:

Keep digital records of all income and expenses

Submit quarterly updates to HMRC via MTD software

Finalise your income tax with a Final Declaration

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What does Making Tax Digital mean for sole traders?

What does Making Tax Digital mean for sole traders?

If you’re a sole trader or a small business owner, Tide’s free MTD for Income Tax tools ensure:

  • No more paper records or manual tax returns

  • Greater visibility over your tax position throughout the year

  • Less stress and more control over your finances

  • HMRC-recognised software

We aim to make the transition as smooth as possible – offering built-in, MTD-compliant tools with automatic updates and simple guidance.

MTD-compatible software that makes compliance easy

MTD-compatible software that makes compliance easy

  • Generate your Self Assessment form with tax estimates

  • Get a linked Tax Account to put money aside for payments

  • File your returns to directly to HMRC via the Tide app

  • Auto-categorise and capture receipts for instant bookkeeping

  • Send up to 3 customisable invoices per month

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Charlotte Davitt-MillsShotley Vineyard

Tide Accounting is very, very useful for helping us run the business — we can see our day-to-day cash flow as well, meaning we don't have to worry about it, because it’s taken care of.

We understand businesses, it's all we do

Tide is built by business owners for business owners. That’s why we’re trusted by over 1.5 million sole traders, freelancers, and limited companies worldwide.

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