MAKING TAX DIGITAL

Making Tax Digital for Income Tax simplified with Tide

Our HMRC-recognised Making Tax Digital software is evolving beyond VAT. In February, we’ll be launching dedicated tools to help you stay compliant with the upcoming Making Tax Digital for Income Tax legislation (MTD for ITSA).

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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 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 Tide 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?

If you’re a sole trader or a small business owner, MTD for Income Tax means:

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

A need for HMRC-recognised software, like Tide’s

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

Be first in line when our MTD tools launch

Be notified about MTD for Income Tax first

Get early access to MTD features

Receive notifications on the latest updates and deadlines

Get access to all MTD-related resources

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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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MAKING TAX DIGITAL