Making Tax Digital

HMRC is changing the way businesses manage and report their tax. The good news? bluQube has you covered - at no extra cost to our customers.

Making Tax Digital (MTD) is HMRC's ongoing programme to move tax record-keeping and reporting fully online. It affects how businesses submit VAT returns and, from April 2026, how qualifying individuals report income tax. Whether you're already under MTD or preparing for what's next, bluQube handles both - built into your subscription, nothing extra to pay.

 

MTD for VAT

MTD for VAT is already here and fully mandatory for all VAT-registered businesses. Under the rules, you must keep digital VAT records and submit returns using HMRC-compatible software - spreadsheets and manual entries to HMRC's portal are no longer compliant on their own.

bluQube's VAT functionality is fully MTD-compliant. Your VAT records are kept digitally within bluQube, and submissions go to HMRC (either directly or via our built-in bridging capability), securely, accurately, and without the faff of manual workarounds.

 

What's included:

• Digital VAT record keeping
• Direct submission to HMRC
• Full audit trail
• Multi-entity VAT support
• All included as standard — no add-ons, no surprises

 

MTD for Income Tax

From April 2026, HMRC is extending Making Tax Digital to income tax. Rather than a single annual Self-Assessment return, qualifying individuals must keep digital records and submit quarterly updates to HMRC, followed by a year-end final declaration.

The rollout is phased based on gross income from self-employment and/or property:

Phase	Who's affected	Start date
Phase 1	Gross income over £50,000	April 2026
Phase 2	Gross income over £30,000	April 2027
Phase 3	Gross income over £20,000	April 2028

bluQube supports MTD for Income Tax as part of your existing subscription. Quarterly updates and digital record-keeping — all handled through the software your finance team already uses day to day.

 

MTD for Income Tax and multi-entity organisations

MTD for Income Tax isn't just a sole trader concern. For organisations operating across multiple entities, such as groups that include property businesses, mixed trading structures, or entities with owners who have qualifying personal income - the compliance picture can get complex fast. bluQube's multi-entity architecture means each relevant entity can be managed, tracked, and reported on within a single system, with no need to reconcile data across separate tools. We built this capability in direct response to a customer need, and it's available to all bluQube customers as standard.

 

What's included:

• Digital income and expense record keeping
• All four quarterly submissions to HMRC
• Multi-entity support across your group structure
• All included as standard - free for existing customers

 

One Software. Both Covered.

Many businesses are finding themselves juggling separate tools for VAT and income tax compliance. With bluQube, there's nothing to bolt on, no third-party bridging software to manage, and no additional licence fees. It's all there, it works, and there are real people on the other end of the phone if you need them.

"We answer calls within three rings and resolve issues quickly - because compliance deadlines don't wait, and neither should you."

 

Not sure if MTD for Income Tax applies to you?

MTD for Income Tax currently applies to sole traders and landlords above the income thresholds above. Partnerships will be brought into scope at a later date. If you're unsure how the rules affect you or your organisation, get in touch with our team - we're happy to talk it through.