Making Tax Digital for Income Tax, made simple
From April 2026, many sole traders and landlords must switch from annual Self Assessment to Making Tax Digital for Income Tax (MTD). GoSimpleTax and !Coconut work together to make the change simple – with !Coconut providing HMRC‑recognised software for digital record‑keeping and quarterly submissions.
Understand what MTD means for you today – and get ready with !Coconut, part of the GoSimpleTax family.
- GoSimpleTax and !Coconut are HMRC‑recognised for Self Assessment and MTD for Income Tax.
- Coconut is HMRC‑recognised Making Tax Digital for Income Tax software for sole traders and landlords.
- Rated Excellent on Trustpilot (!Coconut + GoSimpleTax).
What is Making Tax Digital for Income Tax (MTD)?
Plain English explanation: Making Tax Digital for Income Tax is HMRC’s new way of reporting income and paying tax. Instead of filling in one Self Assessment tax return every year, affected sole traders and landlords will:
-
- Keep digital records of their income and expenses
- Send quarterly updates to HMRC using MTD‑compatible software
- Submit a MTD Tax Return each year, confirming all their income and reliefs
MTD is designed to reduce errors and make it easier to keep on top of your tax bill – but it also means you’ll need the right software in place.
When will MTD for Income Tax apply to you?
From 6 April 2026
Sole traders and landlords with a total income of more than £50,000 must follow MTD rules.
From 6 April 2027
Sole traders and landlords with total income of £30,000–£50,000 are brought into MTD.
From 6 April 2028
Sole traders and landlords with total income of £20,000–£30,000 join MTD.
Note: income is gross income from business and/or property before expenses.
If your income is below £20,000, you won’t be required to join MTD for Income Tax in the first phase.
HMRC may extend MTD in future.
What’s changing compared to Self Assessment?
Now – Self Assessment
• One Self Assessment tax return once a year
• Can keep paper records or spreadsheets if you wish
• Many people only work out their tax bill just before the deadline
Under MTD for Income Tax
• Digital records of income and expenses
• Quarterly updates sent to HMRC via MTD‑compatible software
• MTD tax return once a year instead of an annual Self Assessment return
For a deeper comparison, see our guide: Making Tax Digital for Income Tax vs Self Assessment.
GoSimpleTax + !Coconut: everything you need, now and in the future
GoSimpleTax and !Coconut are part of the same family. Together, they give you everything you need – from simple end‑of‑year Self Assessment filing to digital record‑keeping and quarterly MTD updates.
- GoSimpleTax specialises in making your annual Self Assessment return simple, with HMRC‑recognised filing software.
- !Coconut is a simple accounting and tax app for sole traders and landlords, and is HMRC‑recognised for Making Tax Digital for Income Tax digital record‑keeping and quarterly submissions.
If you already use GoSimpleTax for Self Assessment, !Coconut is the natural next step to get ready for MTD. The two products are designed to work together, so the figures you track in !Coconut can be used when you file with GoSimpleTax.
How !Coconut makes MTD for Income Tax easier
!Coconut is built specifically for sole traders and landlords – not limited companies. It helps you manage day‑to‑day finances and stay compliant with MTD for Income Tax, without drowning in admin.
HMRC‑recognised for MTD for Income Tax
!Coconut’s MTD for Income Tax software is recognised by HMRC for digital record‑keeping and quarterly submissions. That means you can keep records, send updates and complete your MTD obligations in one place.
Simple digital record‑keeping
Connect your bank accounts and credit cards, or add transactions manually. !Coconut helps you track income and expenses throughout the year so your records are always MTD‑ready.
Quarterly updates without the panic
When a quarter ends, !Coconut helps you review your records and send the required summary to HMRC in just a few steps.
Real‑time view of how much tax to set aside
See an up‑to‑date estimate of your tax bill as you go. No more guessing or nasty surprises.
Built‑in invoicing and receipt capture
Send and track invoices, snap photos of receipts and store everything in one place, ready for MTD and Self Assessment.
Works with your accountant
Invite your accountant or bookkeeper into !Coconut so they can review your figures, check submissions and support you through MTD.
Do I need GoSimpleTax, !Coconut, or both?
| If you’re filing a tax return now (before MTD applies to you): | If you’re a sole trader or landlord and MTD applies to you from 2026, 2027 or 2028: |
|---|---|
|
|
You won’t be left on your own. Between GoSimpleTax and !Coconut, you’ll have simple software and human support at each step of the journey – from traditional Self Assessment through to full MTD.
Trusted tools for Self Assessment and MTD
GoSimpleTax and Coconut are used by thousands of sole traders, landlords and individuals across the UK. Together, they combine years of Self Assessment expertise with purpose‑built MTD functionality.
 |
 |
|---|---|
| GoSimpleTax – HMRC‑recognised Self Assessment tax software, with thousands of positive reviews and an Excellent rating on Trustpilot. | !Coconut – HMRC‑recognised MTD for Income Tax software for digital record‑keeping and quarterly submissions, built specifically for sole traders and landlords (Coconut MTD info). |
Both products are built around plain‑English guidance and friendly support.
Start your free !Coconut trial
Start your free trial, no card required.
Making Tax Digital for Income Tax FAQs
Be ready for MTD – without the stress
Use GoSimpleTax to take care of your Self Assessment today and !Coconut to get ready for digital record‑keeping and quarterly updates under MTD.
Still need to file Self Assessment? Start your GoSimpleTax free trial