making tax digital
HMRC’s Making Tax Digital (MTD) initiative is modernising UK tax processes for businesses. By simplifying tax compliance, MTD reduces errors and the associated costs and stress.
After launching MTD for VAT in 2019, regulations now extend to all VAT-registered businesses, including those under the VAT threshold as of April 1, 2022.
The next phase targets income tax: from April 2026, unincorporated traders and property landlords with gross income over £50,000 will submit quarterly returns, with the threshold lowering to £30,000 in April 2027. The timeline for partnerships remains unconfirmed, but HMRC is running a pilot scheme.
Corporate tax will also transition to MTD, with a mandate date yet to be established. A pilot is expected, though no start date has been announced.
how we can help
stay MTD compliant with the right software
Choosing the correct accounting software is crucial for meeting HMRC’s Making Tax Digital (MTD) requirements. We simplify this decision by recommending the best-fit software, like Xero or FreeAgent, that aligns with your business needs and MTD compliance. Our team considers factors such as your industry, business size, and financial processes to suggest user-friendly, efficient software that helps you easily manage digital tax submissions. This ensures your business remains compliant while also benefiting from enhanced financial oversight and automation.
expert guidance on MTD compliant record-keeping
Keeping accurate digital records is a fundamental requirement under MTD, and we offer expert advice on how to manage this effectively. Our guidance covers best practices for recording transactions, managing receipts, and organising financial data digitally to prevent errors and reduce your administrative burden. By streamlining your record-keeping processes, you’ll not only remain compliant but also have well-organised financial information that makes it easier to monitor and analyse your business’s performance.
empowering your team to navigate MTD with confidence
Understanding Making Tax Digital can be complex, but our comprehensive training and resources make it straightforward. We provide tailored training sessions to ensure you and your team are comfortable using MTD-compliant software and understand all relevant tax obligations. Additionally, we offer ongoing resources like guides and tips to keep you informed of any updates. This hands-on approach ensures your business stays up to date and confident in managing digital tax compliance, reducing the risk of penalties.
regular checks to keep you ahead of MTD regulations
Compliance doesn’t stop at initial setup; it requires ongoing attention. We conduct regular reviews of your practices to ensure continued adherence to MTD regulations. Our proactive monitoring identifies any potential issues early, allowing us to make necessary adjustments before they become problems. This ongoing support not only keeps your business compliant but also helps optimise your financial processes, ensuring you are always prepared for any regulatory changes. With our reviews, you can feel secure that your MTD obligations are always being met.​