What is Making Tax Digital for Income Tax (MTD IT)?

MTD IT is part of HMRC's wider digital strategy to modernise the UK tax system. From April 2026, it applies to self-employed individuals whose combined gross income from self-employment and property exceeds £50,000 a year. You'll need to keep digital records, send quarterly updates, and submit a final declaration.

Who must follow MTD IT?

MTD for Income Tax applies to self-employed individuals and sole traders whose combined gross income from self-employment and property exceeds the threshold. This includes those in the building trade, property owners, consultants, IT contractors, healthcare professionals, personal coaches, product makers, educators, tutors, and anyone providing outsourced services.

What are the benefits of MTD IT for sole traders?

MTD IT provides a clearer view of your tax position with year-to-date updates four times a year, fewer surprises with regular reporting for easier budgeting, less to do at year-end by keeping records up to date, reduced errors with compatible software, and better control of your finances with digital record-keeping.

How does TaxNav support the self-employed?

TaxNav helps you stay compliant with confidence, record and report with ease using ready-made spreadsheet templates or bridging software for existing spreadsheets, and provides a simple, secure and cost-effective platform. An annual subscription is £60+VAT or £6+VAT per month, with a 30-day free trial.

MTD turns your simplest clients into your most demanding ones.

Quarterly submissions mean more work, more contact and more pressure on already thin margins. TaxNav is built to help accountants keep the client relationship without absorbing the quarterly admin.

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Meet Navi - your client's MTD guide

Navi helps your clients through each quarterly submission step by step. You stay informed, in control and available when needed — without doing the routine work yourself.

The challenge

MTD makes low-fee compliance clients harder to justify.

For years, straightforward compliance clients could be served efficiently and profitably. MTD for Income Tax changes that model. Quarterly updates, digital record-keeping and year-end obligations all increase workload — but for many firms, fees will not rise in proportion.

4×

More submission touchpoints across the year under the MTD model

5m+

Self-employed individuals and landlords expected to fall within MTD for Income Tax from April 2026

£0

The extra fee many firms feel they can realistically charge basic compliance clients

Client types

Not every client is affected equally.

High autonomy · Low complexity

Self-serve clients

Comfortable with simple software and happy to manage straightforward obligations themselves. They value reassurance, not hand-holding.

TaxNav fit: ideal — self-serve with accountant oversight

High autonomy · High complexity

Advisory clients

More involved affairs, multiple income sources, and greater need for planning or interpretation.

TaxNav fit: useful — supports your advisory relationship

Low autonomy · Low complexity

Guided clients

Straightforward affairs, but low confidence with tax or technology. These clients often create the most admin for the lowest fee.

TaxNav fit: strong — Navi guides them through the process

Low autonomy · High complexity

Support-heavy clients

Complex circumstances combined with low digital confidence. These clients still need practice input, but routine admin can still be reduced.

TaxNav fit: partial — reduces process burden and improves visibility

Keep the client. Remove the quarterly drag.

Profitability calculator

What is a compliance client really worth under MTD?

Enter a few headline numbers and compare your current compliance model with the TaxNav approach before quarterly obligations start to erode margin.

Your practice numbers

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Current model

£-10,200

Revenue

£21,000

MTD admin time

480 hrs

Cost of admin time

£31,200

With TaxNav

£11,640

Revenue

£21,000

MTD admin time

480 hrs

Cost of admin time

£31,200

Hours saved / yr

£-10,200

Margin reclaimed

£-10,200

Get your full breakdown — join Navigator free

How it works

Your client manages the quarterly process. You stay in control.

Step 1

Client layer

Your client works from their preferred records — spreadsheet, CSV or connected data source. Navi guides them through each stage in plain language.

Step 2

TaxNav submission

TaxNav checks the figures, prepares the required submission and files directly to HMRC through the MTD for Income Tax system.

Step 3

TaxNavHQ - accountant view

You can see client status, identify exceptions, review progress and step in where needed — all from one place.

Works with spreadsheets and Excel

HMRC-recognised software

Guided client journey with Navi

CSV and connected data options

Keep the client. Reduce the work.

See TaxNavHQ

Two minutes to understand the model.

See how accountants use TaxNavHQ to monitor compliance clients, review status and stay in control without being pulled into every quarterly task.

TaxNav Navigator

Free for accountants in practice.

Navigator is TaxNav's free community for accountants serving self-employed clients and landlords. It gives you early access to updates, practical thinking and commercial insight as MTD reshapes the compliance model.

MTD insight

Clear updates on mandation dates, HMRC guidance and what the changes may mean in practice.

Benchmark thinking

See how other firms are approaching pricing, workflow, segmentation and client handling in the MTD era.

Early access

Hear first about TaxNav developments, practice tools and commercial options before wider release.

Community and practical ideas

Learn how other accountants are adapting their delivery model without compromising client relationships.

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Navigator Partner

Ready to build TaxNav into your practice model?

Choose the commercial structure that suits your firm — while keeping the client relationship firmly with you.

TaxNav Referral

The client buys direct. You keep the relationship.

The client purchases their own TaxNav licence. You retain oversight and continue to support the relationship where appropriate, without taking on the software cost yourself.

Best suited to: firms testing the model

TaxNav Reseller

Bundle licences, set your pricing and manage the experience your way.

Access volume pricing, include TaxNav within your service offer and give clients a guided route through MTD while maintaining visibility through TaxNavHQ.

Best suited to: firms with a larger compliance client base

Talk to us about Navigator Partner and we'll help you find the right model for your practice.

Book a practice conversation

Accountant feedback

What firms in the TaxNav pilot are saying.

I thought I might have to let some of these clients go. The extra quarterly work would have made them hard to justify. TaxNav changed that.

Rachel T.

RT Accounts · Sheffield · Pilot participant

TaxNavHQ was the part that won me over. I can see where every client is without becoming the person who has to chase them every quarter.

Marcus B.

Belfield Advisory · Manchester · Pilot participant

Free resource

The MTD for Income Tax Accountant Survival Playbook

A practical guide to protecting margin, rethinking client handling and preparing your firm for MTD without absorbing all the extra work.

MTD for Income Tax Accountant Survival Playbook

A practical resource covering client segmentation, profitability thinking, delivery models, workflow ideas and the commercial case for a more scalable approach to compliance under MTD.

Download free - join Navigator first

Ready to make compliance clients manageable again? Join Navigator free.

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