Making Tax Digital for Income Tax eligibility questions support
When you tap to set up our submission tool, you are asked a series of 5 questions so that we can help you understand the impact Making Tax Digital for Income Tax will have on your business. Below is an explanation of what each question means:
1. What best describes your professional situation?
This question is asking you to confirm how your business makes money. You can choose from:
Sole trader with single income - A sole trader with only one source of income
Sole trader with multiple income - A sole trader with only several sources of income
Sole trader with PAYE employment - A sole trader who is working under the PAYE scheme, usually for another employer
Sole trader and landlord - A sole trader who also owns and makes money from a property
Landlord - A business which only makes money from a property that they own
Other - Anyone not covered by the above examples
2. What was your total gross income in the 2024/2025 tax year?
This question is asking you to confirm an estimate of the income that your sole trader business(es) made in the 24/25 tax year (6th April 2024 - 5th April 2025) before any expenses are taken from the estimate.
Please select from the options the range that matches your estimate for gross income for your sole trader business(es)
3. How did you file your taxes for the 2024/2025 tax year?
This question is asking how you filed your taxes with HMRC for the 2024/2025 tax year (6th April 2024 - 5th April 2025). The options are:
I did it myself - You completed your Self Assessment and filed it with HMRC on your own.
I did it with an accountant - You completed your Self Assessment with support from an accountant to ensure its accuracy
An accountant did it for me - You hired an accountant to complete your Self Assessment for you
I did not file - You did not file your Self Assessment with HMRC for the 24/25 tax year.
4. What best describes your banking set up for your business?
This question is asking you how you handle the finances for your business and whether you use your just your Monzo Business account or other accounts with other providers.
I exclusively use Monzo Business - You only use your Monzo Business current account (plus any other Monzo products tied to it e.g. Pots, Loans etc)
I use Monzo Business and other accounts - You use your Monzo Business current account (and other Monzo products) as well as current accounts with other banks or providers
I exclusively use other accounts - You opened a Monzo account but do not use it for the finances of your business, instead you use only current accounts with other banks or providers
5. Do any of the following apply to you?
I am registered for VAT - You are a business that is registered for VAT payments as opposed to Income Tax
My business uses accruals basis accounting - You or your accountant file your business transactions before they are complete. This is different to cash basis accounting, which only records income and expenses for the goods/services once the transactions are complete.
I am not able to use digital tools for tax due to my circumstances - Due to your individual circumstances, you are not able to use digital tools to file your taxes. You can find out more from HMRC here
If you need any other support with Making Tax Digital for Income Tax or Monzo's submission tool, please get in touch to us!
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