Making Tax Digital, explained in plain English

If you are self employed in the UK, you have probably seen the phrase "Making Tax Digital" and quietly hoped it would go away. It will not, but the good news is that it is far less scary than it sounds. Here is the whole thing in plain English, with no jargon.

What Making Tax Digital actually is

Making Tax Digital, or MTD, is HMRC moving tax from paper and once a year forms to software and regular digital updates. Instead of scribbling figures into a spreadsheet the night before a deadline, you keep your records in software during the year and send updates to HMRC online.

That is really the whole idea. Digital records, kept as you go, submitted through software. The aim is fewer mistakes and fewer nasty surprises at year end.

Who it affects, and when

There are two parts to MTD that matter for most people.

MTD for VAT is already here. If your business is registered for VAT, you already need to keep digital records and file your VAT returns through compatible software.

MTD for Income Tax is the newer one, and it is arriving in stages based on your income from self employment and property:

• From 6 April 2026 if your total income from self employment and property is over £50,000.
• From 6 April 2027 if that income is over £30,000.
• From 6 April 2028 if that income is over £20,000.

If you earn under those thresholds, you are not required to use MTD for Income Tax yet, though it is worth getting into good habits early.

What you actually have to do

Once MTD for Income Tax applies to you, three things change:

1. You keep digital records of your income and expenses, rather than paper or a loose spreadsheet.
2. You send HMRC a short update every quarter through software.
3. You finalise everything once a year, replacing the old Self Assessment process.

None of this requires you to become an accountant. It just means your record keeping needs to live in software that talks to HMRC.

How to get ready without the stress

You do not need to do everything at once. A simple path:

• Start keeping your income and expenses in one place now, even before MTD applies to you.
• Choose software that is built for MTD so the quarterly updates are handled for you.
• Keep your business money separate from your personal money. It makes everything easier.
• If your figures are complicated, speak to an accountant. Tidy digital records make their job cheaper.

Where Berified fits in

Berified is being built to make this genuinely simple. You describe what happened in plain English, for example "paid £120 including VAT for a Canva subscription", and Berified turns it into a proper digital record for you, ready for the way MTD works. No debits and credits to learn, no spreadsheet held together with hope.

Want to be first to try it? Join the Berified waitlist for early access and founder pricing.

This article is general information, not tax advice, and the rules can change. Always check the latest guidance on gov.uk or speak to a qualified adviser for your situation.