Embrace the Digital Era with TaxConnect Accountants Ltd
What is Making Tax Digital?
Making Tax Digital (MTD) is a key initiative by HMRC to digitalise the tax system and make it
easier for individuals and businesses to get their tax right and keep on top of their affairs. MTD
will require businesses and individuals to keep digital records, use software that works with
MTD and submit updates every quarter, bringing the tax system closer to real-time.
MTD will also bring benefits such as
Improved accuracy of digital records
Additional help built into many software products
Digital records being sent directly to HMRC
Wider productivity gains for businesses by encouraging digitalisation
The HMRC Roadmap
Your Path to Digital Compliance
The HMRC has laid out a roadmap for implementing Making Tax Digital. It is crucial for
businesses to understand the key milestones and requirements to avoid penalties and
ensure a smooth transition. Here's an overview of the HMRC roadmap:
VAT Reporting
Since April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold are required to keep digital records and submit VAT returns using MTDcompatible software.
Income Tax Reporting
Starting from 6 April 2026, self-employed individuals and landlords
with annual business or property income above £50,000 will need to maintain digital records and submit quarterly updates of their income and expenses using MTD-compatible software. This £50K threshold will be reduced to £30K from April 2027.
Corporation Tax Reporting
In the future, MTD is expected to extend to corporation tax reporting, with businesses having to maintain digital records and submit tax returns using compatible software.
How TaxConnect Accountants can help?
At TaxConnect Accountants, we are experts in MTD and can help you navigate the transition
smoothly and efficiently. We can help you:
Choose the right software that works with MTD and suits your business needs
Set up and maintain your digital records securely and accurately
Submit your quarterly updates and annual tax returns to HMRC on time and with confidence
Advise you on how to optimise your tax position and maximise your cash flow
We are here to support you throughout the MTD journey and beyond. Contact us today to
find out how we can help you get ready for MTD.
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