Making Tax Digital - What It Means For Your Business
- Maison Accountants
- Aug 14
- 2 min read
Updated: 1 day ago
The UK government’s Making Tax Digital (MTD) initiative is changing the way businesses and individuals manage and submit their tax information. Its aim is to make the tax system more effective, efficient, and easier for taxpayers to get right — but for many, it’s also meant a shift in how they keep their records and file returns.
What Is Making Tax Digital?
MTD requires certain taxpayers to keep digital records and submit tax returns using compatible software. Instead of paper forms or manual entries, your tax information is sent directly to HMRC through approved accounting software.
Who Does It Apply To?
Currently, MTD applies to:
VAT-registered businesses with taxable turnover above the VAT threshold (£90,000 as of April 2024)
Some businesses voluntarily registered for VAT
MTD for Income Tax Self Assessment (ITSA) is coming next — with phased introduction starting from April 2026 for self-employed individuals and landlords with income above £50,000.
What Are the Benefits?
Less paperwork: No more shuffling through receipts and spreadsheets at year-end.
Reduced errors: Digital submissions cut down on common mistakes.
Better organisation: Real-time updates give you a clearer picture of your finances throughout the year.
What Do You Need to Do?
You will need to:
Use MTD-compatible accounting software (such as Xero, QuickBooks, or Sage).
Keep your business records digitally.
Submit your returns to HMRC through that software.
How Maison Accountants Can Help
If you’re unsure whether MTD applies to you, how to get set up, or which software is best for your business, we can guide you through the entire process.
We have helped many clients make a smooth transition to digital tax filing — saving them time, reducing stress and improving accuracy.
Get in touch today to make MTD simple for your business.
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