Making Tax Digital (MTD) was introduced by the government to make it easier for individuals and businesses to get their tax right and keep on top of their financial affairs. The first stage of MTD has focused on VAT, with new requirements imposed on some VAT registered businesses and organisations from April 2019.

An HMRC pilot for Making Tax Digital for Income Tax Self-Assessment reporting started on 22 April 2024. HMRC asked agents and accountants to get involved with the first phase of the trial, which will target firms with clients who are self-employed or landlords with an annual income over £50,000. These people will be legally required to start keeping digital records and send quarterly updates of income and expenditure to HMRC using compatible software from April 2026. The system will be extended to those with an annual income over £30,000 from April 2027.

In line with the government’s MTD requirements, we can help you choose, install and operate the right cloud accounting and digital systems, such as Dext (the new name for Receipt Bank), Sage and Xero.  In particular, the benefits of digital accounting systems to small and medium-sized enterprises include more streamlined record-keeping; the ability to view your financial information in simplistic terms and more efficient payment processes.