Announcement: MTD for Income Tax

News posted by Pete Jones 9 months ago

Early this year, Clear Books was recognised by HMRC as software for MTD Income Tax.

To get ahead of the crowds and opt into MTD Income Tax for the 2025-26 tax year, Clear Books is ready for you now.

If you have a Clear Books sole trader account, just go to the tax menu and you will see “MTD Income Tax”. This will guide you through how to opt in with HMRC, and then link your Clear Books account to HMRC.

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And that’s it! Continue working as normal. Then once per quarter, visit the MTD submissions page to view and submit your cumulative income and expenses.

How to submit an MTD Income Tax Quarterly Update

Submitting a quarterly update is easy. Go to Tax > MTD for Income Tax to see which one is due.

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Viewing the next submission will show the breakdown for that period.

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You can click any value to see the digital records behind it, or simply click “Submit to HMRC” and it’s done.

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For those who want to wait until MTD for Income Tax becomes mandatory in April 2026, you don’t need to do anything but we are here as always if you have any questions.

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7 Replies

How to do you adjust for a April 1 - March 31 MTD submission?

2 months ago

Hi Julia,

Are you able to elaborate on your question? Are you trying to adjust the figures in specific quarter submitted?

Tommy

2 months ago

Hi Tommy, I do my taxes Apr 1 to Mar 31, yet MTD Q1 is Apr 6 - July 5 missing days from what I normally submit, how do I adjust for the tax year I do so I can submit Q1 and Q2?

2 months ago

Hi Julia,

Thank you for clarifying. In this case, you would usually select Calendar in the period type. However, we can see there is an error returned from HMRC. We will escalate this with them and will keep you updated.

Once resolved, you should be able to select the correct Calendar period which will run from Apr 1 - Mar 31.

Tommy

2 months ago

Hi Julia

The issue has been resolved by HMRC. Could you attempt to select Calendar as the period type and let me know if you experience any further issues?

Tommy

2 months ago

Hi Tommy,

It's weird, sometimes I go in and it says Calendar but shows the standard dates, sometimes in says standard and when I try and chsnge it I get an error. Screen shots attached.

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2 months ago

Hi Julie,

My apologies, I have looked into this again, it appears that HMRC would want the first period of the first year to start from 6 April because that is the first day of the tax year. For subsequent tax years, it will start on 1 April.

In this case, at the year end, you can add in the 1-5 April data as part of the year end tax return adjustments.

Tommy

2 months ago

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