You’ve probably heard the phrase “Making Tax Digital” by now. Maybe you’ve even had a few letters from HMRC about it.
But what is it really—and what does it mean for self-employed people and landlords in Glasgow?
This guide explains it in plain English: who it affects, when it’s coming, and how I’m helping clients stay compliant without paying for software they don’t need.
What Is Making Tax Digital (MTD)?
Making Tax Digital is HMRC’s plan to move the UK tax system fully online.
Right now, most people submit one Self Assessment tax return each year. Under MTD, that’s changing.
If you’re self-employed or have rental income, you’ll soon be expected to:
- Keep digital records of income and expenses
- Submit quarterly updates to HMRC (every 3 months)
- File a final annual summary
- Use approved MTD-compatible software to do it
It’s not optional—these changes will become legally required for many taxpayers over the next two years.
Who Will Be Affected (and When)?
The rollout is being phased in:
🗓 April 2026 – MTD becomes mandatory for anyone self-employed or with rental income over £50,000
🗓 April 2027 – Threshold drops to £30,000
And this is just the beginning. Further expansions are expected.
So if you’re a Glasgow-based sole trader, Airbnb host, or property landlord earning steadily—it may affect you sooner than you think.
What Does It Mean in Practice?
In short: more admin, unless you’ve got the right systems in place.
Here’s how things will change:
| Currently | Under MTD |
|---|---|
| One tax return per year | Four quarterly submissions + final return |
| Paper or spreadsheets allowed | Must use MTD-approved digital software |
| Year-end handover to accountant | Ongoing record-keeping throughout the year |
You’ll need to log your income and expenses regularly, using software that speaks directly to HMRC’s system—and get those quarterly submissions done on time.
Most People Think MTD Means Paying for Software
That’s understandable. Platforms like Xero, QuickBooks, and FreeAgent dominate the market—and they all charge monthly fees, typically between £12 and £25 per month.
But I don’t think that’s necessary for most small business owners.
So I built something better.
Squirrel: My Simple, Free MTD Software for Clients
I designed Squirrel specifically for self-employed people and landlords who want:
- An interface as easy to use as a spreadsheet
- The ability to snap photos of receipts from your phone
- No clutter, no upsells—just what’s required for MTD
- And best of all — no software subscription fees
Squirrel is included free for all clients of Glasgow Accountants.
If you already use QuickBooks or Xero, that’s fine—I work with those too. But if you’re looking to avoid another monthly cost, Squirrel gives you a streamlined, supported way to stay compliant.
What Should You Do Right Now?
You don’t need to panic—but you do need to prepare.
Here’s what I recommend:
- Check your incomeAre you on track to exceed £30k or £50k in self-employment and/or rental income? If so, MTD will apply.
- Think about how you keep recordsIf you’re still using paper or Excel, consider how you’ll transition to digital.
- Ask questions earlyDon’t wait until it’s compulsory. Ask now, plan now, and avoid the stress later.
Why Clients Across Glasgow Choose to Work With Me
✅ You’ll deal with me directly, not a call centre
✅ I reply to emails within 48 hours
✅ You’ll get ongoing support throughout the year—not just at tax time
✅ You’ll get free access to MTD-ready software, saving you £100–£300/year
Making Tax Digital Is Coming — But It Doesn’t Need to Be Complicated
If you’re a Glasgow-based sole trader or landlord, I can help you transition smoothly—without the jargon, without extra costs, and without turning it into a headache.
👉 Contact Glasgow Accountants – Honest, personal advice from someone who helps people like you every day.