Making Tax Digital (MTD) accountants

HMRC’s Making Tax Digital (MTD) plans will ultimately create challenges for businesses, individuals and landlords alike. Our specialist tax and accounting experts are ready to assist with MTD compliance solutions.

MTD is transforming how all individuals and businesses handle digital tax reporting to HMRC.  

HMRC is aiming to become one of the most digitally advanced tax administrations in the world and MTD is fundamental to realising that ambition. 

The introduction of MTD is to transform tax administration efficiency by making processes more effective, and easier for taxpayers to get their tax right by removing manual data entry and encouraging digital record-keeping, MTD reduces the risk of human error and supports taxpayer compliance requirements.

The first phase of the MTD journey was introduced in April 2019 with MTD for VAT, the next phase is MTD for ITSA then followed by MTD for Corporation Tax (CT).

Making Tax Digital for Income Tax Self-assessment (MTD for ITSA)

Making Tax Digital for Income Tax Self-assessment (MTD for ITSA) will be phased in from April 2026.

Those affected will be required to keep digital records and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. In response they will receive an estimated tax calculation based on the information provided to help them budget for their tax. At the end of the year, they can add any non-business information and finalise their tax affairs using MTD-compatible software. This will replace the need for a Self-Assessment tax return.

This shift will also require appropriate client accounting software and may involve bridging software options for those transitioning from older systems.

April 2026 – Phase 1 of MTD for ITSA

Individuals and landlords with gross income greater than £50,000.

April 2027 – Phase 2 of MTD for ITSA

Individuals and landlords with gross income between £30,000 and £50,000.

Date to be confirmed – remaining phases

Partnerships together with Individuals and landlords with gross income less than £30,000 will be phased in but the date is yet to be confirmed. MTD exemptions will be possible for those who qualify under specific criteria.

Our experts can assist you in preparing for these MTD deadlines by assessing your current processes and selecting the best digital accounting software for your circumstances.

Making Tax Digital for Corporation Tax (MTD for CT)

HMRC have not confirmed when MTD for CT will be introduced, it was initially due to start in 2026 but looks like it will be delayed for several years beyond that will they prioritise MTD for Income Tax.

Moving online

If you haven’t made the move to online, we can help you make the move!

Once you’ve picked a date to get started, we can help you setup, get automated bank transactions, remove manual inputs and reconcile your bank transactions. With access to real-time updates and live data, you can submit your invoices online whilst gaining valuable insights.

Want to learn more about how we can help?

If you would like to find out more about Making Tax Digital or if there is anything else we can help you with, please don’t hesitate to get in touch with our team.