Making Tax Digital
We help self employed tradespeople, micro-businesses and freelancers transition into making tax digital so that they can continue with what they do best and leave us to worry about the rest!
What is MTD?
Making Tax Digital (MTD) is a UK government initiative that requires businesses and individuals to keep their accounting records in digital form and submit tax information directly to HMRC through approved software, rather than using paper records or manual online forms. It has been introduced to make managing tax easier and more accurate, reduce the risk of mistakes, and create a more efficient, modern tax system.
Does this affect me?
Making Tax Digital applies in stages to different groups. All UK businesses that are VAT-registered must already keep digital records and submit their VAT returns using HMRC-approved software — this has been mandatory since April 2022. For income tax, MTD is being rolled out to sole traders and landlords (and their agents) who have qualifying business and/or property income. From 6 April 2026, anyone with combined income over £50,000 from self-employment or property must start keeping digital records and send quarterly updates to HMRC using compatible software. The requirement will then extend to those with income over £30,000 from April 2027 and £20,000 from April 2028. Other groups (such as individuals earning only from employment or pensions) are not in scope at this stage, and MTD for Corporation Tax is no longer proceeding as originally planned.
How we can help.
We offer a comprehensive bookkeeping service using HMRC-approved software such as Xero to help you stay compliant with Making Tax Digital and in control of your finances. We take care of digitising and maintaining your records, tracking income and expenses, managing invoices, reconciling bank transactions, and monitoring loans and balances.
This gives you a clear, up-to-date view of your business finances at all times and ensures your records are accurate and MTD-ready. By handling the ongoing bookkeeping and day-to-day financial admin, we reduce stress, save you time, and allow you to focus on running your business with confidence.