Making Tax Digital

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Making Tax Digital (MTD) is the biggest overhaul of the tax filing regime in generations.

From 2026 any self-employed business, sole trader or landlord with income of over £50,000 will have to file under the Making Tax Digital Rules. Those with income over £30,000 will be mandated from April 2027 and the remaining small businesses’ timescales to be reviewed in the future.

These rules increase the numbers of filings to HMRC from 1, to 5 per year (minimum!) and require taxpayers to undertake Digital Record Keeping.

They also do not allow taxpayers to file directly via the HMRC site – you have to buy special software to do it.

We won’t lie, it’s going to be a lot more work. But don’t worry – Digital Tax Accountant can take care of it all for you.

Unlike with the current self assessment tax return system where you can go on to the HMRC website and submit your return, the new rules state that you can no longer submit directly to HMRC via their website. You will have to use a piece of HMRC approved software, or engage the services of an accountant who can do that for you.

If that wasn’t disruptive enough, you will also no longer be able to undertake manual record keeping. Every transaction in your business or self employment must be recorded digitally, submitted to HMRC digitally, and done so in a specific format that is approved by HMRC. Yikes!

 Here at Digital Tax Accountant we understand the stresses involved in running a small business. Our hassle-free (MTD compliant) subscription-based accounting services can take one of those stresses off of your hands. We help start-ups, sole traders, small businesses, freelancers, and Limited companies with their accounts and tax responsibilities so that they can spend more time running their businesses.