what is making tax digital

Your accountant will advise you on how MTD applies to your specific situation — but here’s a quick overview to get you started.

Making Tax Digital (or MTD for short) is HMRC’s initiative to modernise how individuals and businesses keep and submit their tax information. In short, it means moving away from paper records and keeping your books in order digitally.

Depending on your business type — whether you’re a sole trader, landlord, partnership or limited company — and how much you earn, MTD may already apply to you or will do in the near future.

Here’s what MTD involves:

• Keeping digital records of your self-employment or property income and expenses
   
• Sending quarterly updates to HMRC throughout the year
   
• Filing your annual tax return online by 31 January
   

If you're still using spreadsheets or keeping paper records, now’s the time to start thinking about switching. We can help you get set up with the right software — like Xero — and support you every step of the way, making the process simple and stress-free.

It’s important to stay on top of this — not following HMRC’s MTD requirements could lead to penalties. But don’t worry — we’re here to make sure you’re fully prepared.

Get in touch and we’ll help you get MTD-ready — without the stress, jargon or confusion.

Let’s make things simple, together.