top of page

Making Tax Digital (MTD): What It Means for You and Your Business

​

Stay Compliant. Stay in Control. Stay Ahead.

​

Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system, making it more efficient, effective, and easier for individuals and businesses to get their tax right. Whether you're a landlord, sole trader, or running a growing business, MTD is changing how you manage your finances.

​

At Hiclass Accounting, we're here to make sure you're not just compliant with MTD — you're confident.

​

What Is Making Tax Digital?

​

Making Tax Digital is a government-led plan to phase out paper-based accounting and replace it with digital record-keeping and regular online submissions using MTD-compliant software.

​

The Key Deadlines:

​

  • Now: MTD is mandatory for all VAT-registered businesses, regardless of turnover.

  • April 2026: MTD for Income Tax applies to self-employed individuals and landlords with total income over £50,000.

  • April 2027: Expands to those earning over £30,000.

  • April 2028 (proposed): Expected to apply to those earning over £20,000.

​

Who Does MTD Apply To?

  • VAT-registered businesses

  • Self-employed individuals (sole traders)

  • Landlords

  • Partnerships and small companies (future stages)

​

If your taxable income is above the threshold, you’ll be required to:

  • Keep digital records

  • Use MTD-compatible software

  • Submit quarterly updates to HMRC

  • Complete a final end-of-year declaration

​

The Benefits of Going Digital

​​

While MTD may seem like another compliance hurdle, it’s actually an opportunity to streamline your finances:

✅ Real-time insights into cash flow
✅ Fewer errors in your records and submissions
✅ Time-saving automation
✅ Simplified year-end reporting
✅ Better decision-making with up-to-date financial data

​

Choosing the Right MTD Software

 

There are several MTD-compatible software options available, including:

  • Xero

  • QuickBooks Online

  • FreeAgent

  • Sage

​

We’ll help you choose the right platform based on your business size, sector, and preferences — and provide full setup and training if needed.

​

How Hiclass Accounting Can Help

​

We offer tailored support for businesses preparing for MTD:

  • ✔️ MTD registration and compliance

  • ✔️ Cloud accounting setup and support

  • ✔️ Quarterly reporting and digital bookkeeping

  • ✔️ Ongoing advice from a friendly, expert team

​

Whether you're just starting to think about MTD or need to overhaul your current systems, we’ll help you take the stress out of the process.

​

Get MTD-Ready Today

​

Don't wait until the last minute. Getting MTD-ready now means fewer surprises, better systems, and more control over your finances.

​

📩 Contact us today to book a free consultation and see how we can help your business thrive in the digital tax era.

​​​​

Frequently Asked Questions (FAQs)

​

What is Making Tax Digital (MTD)?

Making Tax Digital is a government initiative to digitise tax reporting. It requires businesses and landlords to keep digital records and send quarterly updates to HMRC using approved software.

​

Who needs to comply with MTD?

  • All VAT-registered businesses (now live)

  • Self-employed people and landlords earning over £50,000 (from April 2026)

  • Those earning over £30,000 (from April 2027)

​

Can I still use spreadsheets?

Spreadsheets alone don’t meet MTD requirements unless they’re linked to bridging software that can submit returns to HMRC.

​

What software do I need?

We recommend MTD-compatible tools like FreeAgent or Xero — we can help set them up for you and provide training.

 

Will MTD mean more admin for me?
Not if it’s done right! In fact, most clients find MTD saves time and gives better visibility over their finances.

​

📥 Free Download: MTD Checklist for Small Businesses

​

Is Your Business Ready for Making Tax Digital?
Download our free MTD Readiness Checklist and find out exactly what you need to do before the deadline.

✅ What software to use
✅ What records you need to keep
✅ When you need to be compliant
✅ How to make the switch smoothly

​

📩 Click here to download your free checklist


(No email required — just useful, jargon-free info!)

​

​

#MakingTaxDigital #MTD #MTDforIncomeTax #DigitalAccounting #MTDReady #SmallBusinessSupport #CloudAccounting #Xero #QuickBooks #HMRCCompliance #HiclassAccounting

bottom of page