Tax returns are complicated,
Otis makes them easy.

Making Tax Digital for Income Tax applies to sole traders, freelancers, contractors(effectively anyone self employed) and landlords with a total business and/or property income (either from a UK or overseas rental property). From April 2026, it applies specifically to those with income over £50,000, and from April 2027, the threshold drops to £30,000. These individuals will have to submit quarterly returns/updates each year. Otis is designed to help these groups stay compliant without the need for complex accounting software.

Quarterly updates are summaries of your income and expenses that must be submitted to HMRC four times a year under MTD. Deadlines are one month after each quarter ends: 5 May, 5 August, 5 November, and 5 February. Otis automatically formats your data and reminds you of upcoming deadlines so you never miss a submission.

Yes. You can continue using your existing spreadsheets to keep your income and expense records. Making Tax Digital does not require you to switch to full accounting software. Instead, you must use MTD-compatible bridging software to submit your figures to HMRC. All you need to do is upload your spreadsheet, Otis validates the data, and submits it digitally, allowing you to stay compliant without changing how you already work.

If you already track income and expenses in a spreadsheet, this is usually the simplest way to get MTD-ready. See how spreadsheet uploads work or Get everything set up now - it typically takes just a few minutes

MTD brings multiple benefits: accurate digital record-keeping, fewer errors, a real-time view of your tax position, streamlined submissions, and faster processing by HMRC. By using Otis, you can upload your spreadsheets, automatically generate HMRC-ready reports, and file returns instantly — saving time and reducing stress at year-end.

Bridging software links your spreadsheets or existing accounting system to HMRC's MTD platform. It formats your data correctly and submits it securely, meaning you do not need to change how you keep your records. Otis includes a simple, secure bridging solution that allows you to remain MTD-compliant while continuing to use the tools you are comfortable with.

If you are comfortable with spreadsheets but need a compliant way to submit to HMRC, this is the required step. Otis includes bridging by default, so there is nothing extra to install or manage.

Under Making Tax Digital (MTD), HMRC uses a **points-based system** for late submissions and a tiered penalty system for late payments. Each missed submission earns you a point (tracked separately for VAT and Income Tax). For example, reaching four missed quarterly submissions triggers a £200 penalty. Points expire over time if you stay compliant. For late payments: no penalty if the tax is paid within 15 days; after that, penalties rise from 3% (day 15), to 6% (day 30), and 10% per annum from day 31. Otis helps you avoid penalties by automatically tracking deadlines, reminding you, and enabling timely digital submissions and payments.

If you are within Making Tax Digital for Income Tax, your Self Assessment tax return is replaced by what is called a Final Declaration. This confirms your total income, allowances, and tax position for the year. You can no longer submit this directly through HMRC online services and must use MTD-compatible software instead. With Otis, you can complete and submit your Final Declaration without leaving the platform, making year-end filing simple and fully compliant.

You must keep digital records of all business income and expenses, including sales, purchases, payments, and receipts. These records must be stored digitally (not just on paper) in software that can connect directly to HMRC. Otis securely stores your records and makes them accessible anytime for reporting or audits.

First, sign up for MTD for Income Tax via your HMRC online account. Then, choose MTD-compatible software like Otis, set up your digital records, and prepare your first quarterly update.

With Otis, you can upload your data, review it for accuracy, and submit it to HMRC in just a few clicks. Many people choose to do this well before their first submission is due. You can sign up now and be ready when submissions are required.