JUST WHAT IS
“MAKING TAX DIGITAL”?
In simple terms, Making Tax Digital is exactly what it appears to be – an initiative to ensure that the tax records of UK businesses are moved to a streamlined, secure, easy-to-access digital format.
This means that if you currently use the old-fashioned pen-and-paper method to record your tax, or even if it’s all stored in files on your PC, you’ll eventually have to transfer it to software that is Making Tax Digital-approved and compatible. An example of this is Xero, which is software that we firmly believe in and choose to use as our only software for bookkeeping and VAT returns.
If all that sounds like a serious headache – don’t worry. I have a wealth of expertise in a range of taxation software and have an excellent understanding of everything that is required to ensure MTD compliance.
WHEN WILL MTD AFFECT ME?
Currently, all VAT-registered businesses are required to record and submit their tax records using MTD-compliant software – regardless of their taxable turnover.
As of April 2026, self-employed businesses and landlords with an annual income exceeding £50,000 will be required to follow suit - maintaining digital records and providing quarterly updates on their income and expenditure to HMRC.
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As many of us realise all too well, time has a habit of flying by rather quickly. 2026 is not as far away as it might seem, and there is little to gain by leaving it to the last minute.
In fact, using the recommended software for your taxation has numerous benefits and will make your life significantly easier in the long run! It’s accurate, less prone to human error, easy to understand and simpler to contact HMRC whenever you need to.
MAKING TAX DIGITAL NEEDN’T BE A SOURCE OF FRUSTRATION
There’s no reason for you to press on unaided, and risk making costly mistakes that only lead to frustration and potential penalties. By leaving the hard work to LD Accountancy Ltd, you can get on with running your business without the stress of MTD looming over you.
