Making Tax Digital - MTD

What is Making Tax Digital?

Making Tax Digital, or MTD for short, is the UK Government's strategy for moving tax administration from paper processes to digital ones. In short at least...

In order to comply with MTD, businesses will need to use software in order to handle submissions of tax returns, and will no longer be able to use paper forms.

There are other implications that we'll go through in the sections below.

What Will a Business Have to do Under MTD?

Under MTD, businesses and the self-employed will have to:

• keep digital records

• use software that works with Making Tax Digital

• submit updates every quarter, bringing the tax system closer to real-time

Our accounts packages ensure you are always compliant with your MTD requirements.

Should I be Using MTD Now?!

MTD for VAT is already implemented, and you should be using it to submit your VAT returns.
We are already completely moved over to MTD for VAT, and there isn't really any extra work for our clients than there was before MTD.

MTD for Income Tax is coming a little later, but now is the time to prepare for it:

• Turnover > £50,000 starts April 2026

• Turnover > £30,000 starts April 2027

• Turnover > £20,000 starts April 2028

Like with VAT, our clients won't really notice any extra work. Our clients are already laying the groundwork by using our Accounts Packages meaning everything they need is already where it should be.
Once MTD for Income Tax becomes compulsory our clients will simply need to approve prepared returns quarterly, rather than annually.

How We Make MTD Simple for Our Clients

MTD may sound a little daunting, or make you worry about how you are going to comply with it. It doesn't need to make you feel this way.
With our Accounts Packages, you don't really need to do anything new or different.

With our Accounts Packages you are fully MTD compliant:

Keeping Digital Records
We provide your accounting software, which keeps your records digitally. If you have any non-digital documents such as invoices, they are entered onto the software, making them digital.

Use Software that Works With MTD
The software we provide in our packages is MTD compliant. It already handles VAT returns digitally, and will do for Income Tax too.

Submit Quarterly Updates
Each quarter we send the necessary accounts to you for approval then submit them. It's part of our day-to-day handling your accounts.
You might have a similar process for year end accounts, it's just done more often.
From using accounting software, your books are kept up-to-date anyway, so it's just a case of checking and approving a few times a year.

How Much Will it Cost?

With our Accounts Packages, you're covered. Everything involved in MTD is already covered in the price you pay, no extras.

With Income Tax returns needing to be submitted quarterly, rather than annually, it follows that the cost of returns for a year would quadruple.

This isn't the case with us, we cover it all in one simple price.