Making Tax Digital: Easements summary

A number of simplification options are available under Making Tax Digital, which are also called easements.  The table below summarises who the easements are available to and their implications for both digital record keeping and quarterly updates. 

Last updated: 1 May 2025

Easement Who’s it for? Impact on digital records Impact on quarterly updates More information
Retail sales Retailers Record daily gross takings (rather than individual sales) None* Record keeping notice
Simplified expenses Self-employed people using simplified expenses Don’t have to keep records of any actual expenses None* Digital records guidance
Mixed expenses (capital/revenue or private use) All taxpayers, all expenses

Can record

EITHER

just the allowable element

OR

the full expense plus an adjustment to remove the capital/personal element

 None* Digital records guidance
Three line accounts

Taxpayers with gross income below the VAT threshold

(For taxpayers with sole trade and property, EITHER property OR sole trade income must be below the VAT threshold. Easement only applies to the business with turnover under the VAT threshold)

Record items as income or expense only (no categorisation needed)

Applies to ALL sole trades, or ALL property where the easement is used.

(still have to split out and report separately any loan interest on residential properties)

 None* Record keeping notice
Joint Property Owners

Joint Property Owners

(in respect of joint property entries only)

Record income category totals only for jointly owned properties each QUARTER

AND

Record expense category totals only for jointly owned properties once a YEAR

Quarterly updates only need the taxpayer’s share of INCOME from jointly owned properties (not expenses)

(Expenses submitted via year-end finalisation process)

Record keeping notice

+

Update notice
Combination: Joint Property Owners also choosing to use three line accounts easement

Joint Property Owners with total gross rent < VAT registration threshold (including any solely-owned properties)

(in respect of joint property entries only)

Record income total from jointly owned properties for each QUARTER as one summary income  figure

(no categorisation needed)

AND

Record expense total from jointly owned properties for each YEAR (only splitting out and reporting separately any loan interest on residential properties)

Quarterly updates only need the taxpayer’s share of INCOME from jointly owned properties (not expenses)

(expenses submitted via digital tax return)

Record keeping notice

+

Update notice

*the data submitted in quarterly updates will be based on entries in the digital records, so no specific quarterly updates easement is needed