Making Tax Digital
Making Tax Digital (MTD) is an HMRC initiative requiring businesses and landlords to use software to keep digital records and submit quarterly, rather than annual, tax updates, to reduce errors and improve efficiency with digital, real-time reporting.
Navigating the MTD Transition
Making Tax Digital (MTD) isn’t new for VAT, but is becoming a major change for sole traders and landlords under Income Tax Self Assessment.
HMRC guidance sets the phased start dates based on ‘qualifying income’ from self-employment and/or property:
- Over £50,000 (2024–25 tax year) – MTD from 6 April 2026
- Over £30,000 (2025–26 tax year) – MTD from 6 April 2027
- Over £20,000 (2026–27 tax year) – planned from 6 April 2028 (subject to legislation)
From the relevant start date, affected taxpayers will need to keep digital records and send quarterly updates using compatible software, alongside an end-of-year submission. HMRC also sets out timelines and key dates for quarterly update deadlines and end-of-year submissions.
Moving deadlines
Confidence on changing thresholds, and optimum bands.
Habits first
Digital records and rolling reconciliation beat a last-minute scramble.
Fully managed
FWD reviews, implements and submits as your agent.
How can we help you get ready for MTD?
1. Confirm whether you’re in scope.
Many people misjudge the thresholds, especially if they have both property and self-employment income.
2. Choose the right setup.
Some businesses will use full accounting software; others may use spreadsheets with bridging tools. The key is that the records are digital and the submission route is compatible. (If you’re already VAT registered, you may already be part-way there.)
3. Fix the underlying habits.
MTD rewards clean routines: separate bank accounts, consistent categorisation, and monthly reconciliation. If your bookkeeping is currently backlog-driven, quarterly updates will feel painful.
4. Build a simple reporting rhythm.
Quarterly updates don’t need to be perfect accounts, but they do require discipline. The aim is to reduce year-end panic and avoid repeated late submissions.
We can support you end-to-end
Reviewing your current records and systems, keeping things compliant, implementing cloud tools where appropriate, and handling submissions as your agent.
MTD is ultimately a process change. The sooner the process is simplified, the easier the transition will be.
Testimonials
What our clients say
“Jason, Dan, and all his team are great to work with
With and it’s obvious that they primarily have the clients interests at heart. In a professional capacity I have found FWD to be efficient, polite, helpful, approachable and willing to discuss with obvious knowledge on any subject regarding the various aspects of all business types.
Linda Hardee • Stationhouse Book-keeping
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