Making Tax Digital
Making Tax Digital for sole traders in Cornwall
Making Tax Digital for Income Tax has landed. Here's what it means for Cornish sole traders, and how KP Accountants handles the lot for you.
If you're self-employed in Cornwall, Making Tax Digital for Income Tax (MTD for ITSA) changes how you report your business income to HMRC. It started rolling out in April 2026 for higher-earning sole traders and landlords, with lower income thresholds phased in afterwards.
Does MTD apply to you?
- April 2026: income above £50,000 from self-employment or property.
- April 2027: threshold drops to £30,000.
- April 2028: threshold drops to £20,000.
What's changing
Instead of one annual Self Assessment, you'll send HMRC quarterly updates through MTD-compatible software, plus a year-end final declaration. Paper records and spreadsheets that aren't bridged to the right software won't cut it any more. Digital records are the rule.
What's covered
- MTD-compatible software setup
- Digital record keeping
- Quarterly submissions to HMRC
- Year-end final declaration
- Switching you over from your current Self Assessment workflow
- Ongoing support through the year, not just at quarter-end
Pricing
The Making Tax Digital tier is £40/month + VAT. That covers software setup, the four quarterly submissions, the year-end declaration and ongoing support through the year. If you also need VAT or limited-company work, those are quoted on top.
FAQs
It applies to self-employed sole traders and landlords whose total qualifying income from self-employment and property is above the HMRC threshold. Partnerships will be brought in later — HMRC hasn't confirmed when.
April 2026: income above £50,000 from self-employment or property.
April 2027: threshold drops to £30,000.
April 2028: threshold drops to £20,000.
Combined income from both sources counts. If you're not sure whether you qualify, call KP Accountants.
You will need to keep digital records and use MTD-compatible software to send HMRC quarterly updates, plus a final declaration after the tax year ends. KP Accountants can set up the software and handle the submissions for you.
“KP Accountants Ltd have been a great support to our business. From day-to-day bookkeeping through to tax and year-end accounts, everything is handled professionally and efficiently. Running a motorcycle sales and repair business can be busy and unpredictable, so it's reassuring having accountants who are approachable, knowledgeable and easy to contact when needed.”
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