HMRC is changing the way you file your taxes. Nuvo makes it easy.
FAQ
What is MTD?
It requires sole-traders (and unincorporated landlords) with income above certain thresholds to keep digital records and submit quarterly updates to HMRC through approved software.
How can Nuvo Help me?
We understand that transitioning to MTD can seem overwhelming. Our team is here to help you:
- Choose the right MTD-compatible software tailored to your business needs
- Ensure smooth set up and compliance with quarterly and year end submissions
- Provide ongoing support as you adapt to these changes.
Who does this effect?
From April 2026 sole-traders with a qualifying income of £50,000 and over will be required to sign up for Making Tax Digital.
What information will I need to provide?
For the quarterly submissions we will only need details relating to your self-employment or property business. Any other income such as employment, pensions, bank interest and dividends will need to be included on the year end summary.
Will it affect me?
HMRC will be writing to taxpayers over the coming months whose 2024/25 self-assessment tax returns show their total qualifying income as being either over or close to £50,000.
Qualifying income is the total income received in a tax year from self-employment and property. For example, if you receive income of £30,000 from self-employment & £25,000 from property, your qualifying income is £55,000 and you will need to sign up.
What will my deadlines be?
Under MTD your new deadlines will be:
- Q1 April – June: submission due by 7th August
- Q2 July – September: submission due by 7th November
- Q3 October – December: submission due by 7th February
- Q4 January – March: submission due by 7th May
Year End Summary: submission due by 31st January following the end of the tax year
Suggested Software: Xero
- Digital Expense Capture – use tools like Hubdoc or Dext to snap receipts and keep compliant records.
- Quarterly MTD Updates – Xero is fully HMRC-recognised for digital submissions.
- Simple Reporting – Nuvo can provide you with clear profit and cashflow views to help you stay on top of your business.
- Scalable – start with a simple plan and upgrade as your business grows.
We recommend Xero because it makes MTD compliance simple and brings extra benefits:
- Bank Feeds – connect your business account so transactions flow in automatically.
- Quick & Easy Invoicing – send and track invoices from your phone or computer to your customers, and chase late payments.
In summary: Xero takes care of the heavy lifting for MTD ITSA while giving us better visibility of your business finances, saving time and reducing stress at year end.
Real time information also gives us more opportunity to collaborate on how your business in performing and plan ahead to mitigate those tax bills.
