Making Tax Digital FAQs
What is Making Tax Digital (MTD)?
MTD is a UK government initiative designed to transform the tax system, making it more efficient and easier for taxpayers to get their tax right through digital record-keeping.
Who needs to comply with MTD?
Currently, all VAT-registered businesses must follow MTD rules. MTD for Income Tax will follow for self-employed individuals and landlords with income over specific thresholds.
What are the software requirements?
Businesses must use MTD-compatible software to keep digital records and submit returns to HMRC. We can help you select and implement the best cloud-based tools for your business.
With Making Tax Digital for Income Tax being introduced in stages, more sole traders and landlords will need to move to digital record keeping and quarterly reporting to HMRC.
We help businesses understand what the changes mean for them, get the right systems in place and stay on top of their ongoing reporting obligations.
Whether you're already required to use MTD or preparing for the April 2027 rollout, we can help you make the transition smoothly — from choosing compatible accounting software and organising your records to managing quarterly updates and your year-end tax return.
Key MTD Compliance
Digital Record Keeping
- Maintain digital logs of all transactions.
- Software-compatible record storage.
- Real-time automated data backups.
Software Submission
- Functional digital links between apps.
- Direct submissions via HMRC-API.
- Elimination of manual copy-pasting.
Quarterly Updates
- Mandatory quarterly summary updates.
- End-of-period statements (EOPS).
- Final annual tax declarations.