Making Tax Digital for Income Tax - how untied is making taxes easy
Taxes are changing!
Making Tax Digital for Income Tax (generally known as just MTD) is the biggest change to income tax reporting in a generation. It is a key part of the government’s vision for modernising the UK tax system and is designed to make tax administration more efficient and easier for taxpayers.
untied was the first end-to-end app recognised by HMRC for MTD. It means that the good news for all users of untied is that we’re set up to migrate you to Making Tax Digital when the time comes.
The programme though has been subject to significant delays and changing requirements.
Key points:
- MTD for Income Tax will be mandated to apply to self-employed people and property landlords with total income from these sources over £50,000 from April 2026, £30,000 from 2027 and £20,000 from 2028 (note that other income outside these sources - such as from employment (PAYE), investments, pension etc - is not included in working out these thresholds - so it's important to make sure they are excluded from the sums)
- Regardless of whether you are mandated, you can voluntarily join MTD with untied as part of the HMRC official testing phase
- It will require third party software
- Instead of one return submitted many months after the end of the tax year, MTD involves quarterly reporting during the year with any final numbers confirmed after the year-end
- Simplified penalties are coming in at the same time
- untied will make this quick, smooth and seamless
HMRC's beta
untied was first live supporting HMRC's pilot of MTD for Income Tax since 2020 - but it's only in 2025 that things have really ramped up and we're encouraging people to join the testing phase.
Making tax digital today with untied
There is good news though for early adopters.
The core of MTD is digital record keeping and direct filing.
untied offers this today even without formal participation in the HMRC testing phase.
With untied you enjoy a streamlined experience of transactions through to your tax return. It means you get the benefit of HMRC's vision for Making Tax Digital without the reporting burdens and without the risks from being part a trial.