Making Tax Digital
What Is MTD & How We Can Help
What does Making Tax Digital Mean for You?
Making Tax Digital (MTD) is one of the biggest changes to the UK tax system in decades. Introduced by HMRC, it aims to modernise the way businesses and individuals keep records and submit tax returns.
Instead of preparing accounts once a year and filing a single Self-Assessment return, many taxpayers will now need to:
- Keep digital records of income and expenses
- Use compatible accounting software
- Submit quarterly updates to HMRC
- Complete a final digital declaration each year
At Michael King & Co, we help businesses, landlords and self-employed individuals prepare for MTD with confidence. We help you to remain compliant whilst improving how you manage your finances.
What Is Making Tax Digital?
Making Tax Digital is a government initiative designed to reduce tax errors and improve efficiency by moving the UK tax system fully online.
Under MTD rules:
- Paper records are no longer acceptable for those within scope
- Manual copy-and-paste between systems is not permitted
- Tax information must be submitted digitally using approved software
MTD has already been introduced for VAT-registered businesses. The next phase (MTD for Income Tax), which starts on 6th April 2026, will significantly affect self-employed individuals and landlords. It is more than just a filing change. It’s a structural shift in how tax reporting works.
Who Needs To Comply, and When?
MTD for VAT:
This is already mandatory for most VAT-registered businesses.
MTD for Income Tax:
The rollout will happen in stages:
From April 2026: Self-employed individuals and landlords with gross income over £50,000
From April 2027: The threshold reduces to £30,000
From April 2028: The Threshold reduces to £20,000
If you earn income from self-employment, rental properties, or you have multiple income streams, there is a strong chance MTD will affect you within the next few years. If you’re unsure whether you fall within scope, get in touch with us. We can review your position and advise you accordingly.
What You Must Do Under MTD
If you fall within MTD, you will be required to:
1. Keep Digital Records:
All income and expenses must be recorded digitally using compatible accounting software.
2. Submit Quarterly Updates:
Instead of one annual submission, you will send HMRC a summary of your income and expenses every three months.
3. Complete a Final Declaration:
At the end of the tax year, you will confirm your final tax position digitally.
For many individuals who are used to annual Self-Assessment, this represents a major change in routine.
Why Preparing Early Makes Sense
Making Tax Digital is mandatory, but preparing early has clear advantages:
- Greater visibility of your tax position throughout the year
- Improved cashflow forecasting
- Reduced year-end stress
- Fewer surprises when tax becomes due
- Lower risk of penalties
Businesses that move to digital systems early often discover operational improvements beyond tax compliance alone. And waiting until the deadline approaches can mean rushed decisions, unsuitable software, and avoidable stress.
How Michael King & Co Can Help
We offer practical, tailored support to make the transition smooth and manageable.
MTD Readiness Review: We assess your current record-keeping and confirm when MTD will apply to you.
Software Advice & Setup: We recommend suitable cloud accounting software and assist with setup, migration and configuration.
Training & Ongoing Support: If you prefer to keep your own records, we provide guidance and support to ensure compliance.
Quarterly Submission Management: We can manage the submission process for you on your behalf.
Full Bookkeeping Services: For clients who prefer a fully managed solution, we provide ongoing bookkeeping and compliance support.
Our approach is to make it as simple as possible for you by removing complexity, ensuringcompliance, and helping you to stay in control of your finances.
Frequently Asked Questions
Making Tax Digital for Businesses and Individuals in Stanmore
We are based in Stanmore in Middlesex but work for businesses and individuals across London and the South-East. We recommend early preparation for all of our clients, many of whom have:
- Mixed income streams
- Property portfolios
- Sole trader structures
- Growing turnover nearing threshold levels
We work closely with businesses and individuals in Stanmore to:
- Assess when MTD will apply
- Implement suitable accounting systems
- Provide clear, practical advice
- Ensure a stress-free transition
Having a local accountant who understands both your business and the regulatory changes can make a significant difference. If you would like to discuss how MTD affects you, we invite you to get in touch for a confidential consultation.
A Useful MTD Resource
For further information, you may wish to review the Government Making Tax Digital Campaign website:
https://makingtaxdigital.campaign.gov.uk/
As your accountants, we are always happy to interpret these updates for you and explain what they mean in practical terms.
Ready to Prepare for Making Tax Digital?
Making Tax Digital is coming, but it does not need to be overwhelming. With the right advice and systems in place, it can become an opportunity to improve your financial visibility and control. Contact Michael King & Co today to arrange your MTD readiness review.
