Making Tax Digital

We help businesses, landlords and sole traders comply with Making Tax Digital (MTD) while maximising tax efficiency.

What is Making Tax Digital (MTD)?

Making Tax Digital is HMRC’s programme requiring digital record-keeping and software-based submissions for certain taxes. All VAT-registered businesses must already keep digital VAT records and file returns via compatible software. MTD for Income Tax Self Assessment (ITSA) starts in phases from April 2026 for eligible sole traders and landlords.

Who is Making Tax Digital for?

  • VAT-registered businesses (companies, sole traders, partnerships) — already within MTD for VAT.

  • Sole traders & landlords — within MTD for ITSA from April 2026/2027 depending on qualifying income:

    a) Taxpayers with rental and / or trading income, before deduction of expenses (i.e. turnover) above £50k in the 2024/25 tax year will need to start submitting quarterly returns for 2026/27, i.e. the first return would be for the quarter ended 5 July 2026 which would need to be filed by 7 August 2026.

    b) Taxpayers with turnover above £30k in 2025/26 will need to start submitting quarterly returns for 2027/28 i.e. the first return would be for the quarter ended 5 July 2027 which would need to be filed by 7 August 2027.

    c) Taxpayers turnover above £20k in 2026/27 will need to start submitting quarterly returns for 2028/29 i.e. the first return would be for the quarter ended 5 July 2028 which would need to be filed by 7 August 2028.

How we can help you get (and stay) MTD compliant

Xero Advisor

1) Software setup & migration

Cloud bookkeeping that’s MTD-ready. As a certified Xero advisor, we can supply licences, migrate data and connect bank feeds, with training for you and your team.

2) Digital record-keeping

We can advise on best-practice chart of accounts, receipt capture workflows and audit-proof digital links, so your records meet MTD rules without disrupting your day-to-day.

3) VAT returns via compatible software

We prepare and file VAT returns directly from software, ensure digital links are maintained and advise on schemes (Flat Rate, Cash, Margin etc.).

4) Quarterly updates for MTD ITSA

From April 2026, we’ll manage the required quarterly submissions and end-of-period statements for eligible sole traders and landlords, to ensure full compliance with the new Making Tax Digital for Income Tax Self Assessment criteria.

5) Clean-up & review

Historic tidy-ups, VAT error corrections and process reviews so you start MTD with a clean ledger and robust controls.

business tax accountants

6) Ongoing advice from Chartered Tax Advisers

Beyond compliance, we proactively look for tax-efficiency opportunities throughout the year.

Contact Us

Please contact us to see how we can help you.

Accountants Tunbridge Wells