Posted July 1, 2025

How our Bookkeeping and Tax Team can help you get set up, and ready to comply, with Making Tax Digital for Income Tax

Making Tax Digital (MTD) for Income Tax is rapidly approaching, and many self-employed individuals and landlords are feeling overwhelmed by the prospect of digital record-keeping and quarterly reporting. The good news is that you don’t have to navigate this transition alone. Our experienced bookkeeping team is here to guide you through every step of the process, ensuring you’re fully compliant and ready for the new requirements.

Understanding Making Tax Digital for Income Tax

Making Tax Digital for Income Tax represents the biggest change to self-employment and property income reporting in decades. From April 2026, self-employed individuals and landlords with qualifying income will need to keep digital records and submit quarterly updates to HMRC through compatible software.
This means moving away from the traditional annual Self-Assessment approach to a more frequent, digital-first system. While this might seem daunting, it actually offers several benefits including better cash flow management, reduced year-end surprises, and more accurate record-keeping.

Who Needs to Comply?

The requirements will initially apply to self-employed individuals and landlords with qualifying income over £50,000 per year. However, this threshold will be lowered in April 2027 to £30,000 and to £20,000 from April 2028, so it’s worth preparing regardless of your current income level.
Even if you’re not immediately caught by the requirements, adopting MTD-compliant practices now will put you ahead of the curve and provide valuable insights into your business finances.

How Our Bookkeeping Team Can Help

Initial Assessment and Planning

Our first step is to conduct a comprehensive review of your current record-keeping practices. We’ll assess your existing systems, identify gaps, and create a tailored implementation plan that works for your specific business needs. This includes evaluating your current software, processes, and data quality to determine the best path forward.

Software Selection and Setup

Choosing the right MTD-compatible software is crucial for smooth compliance. Our team has extensive experience with all major accounting platforms and can recommend the solution that best fits your business size, complexity, and budget. We’ll handle the initial setup, data migration, and integration with your existing systems.
Popular options include cloud-based solutions like Xero, QuickBooks Online, Sage Business Cloud, FreeAgent and Hammock for property income. Each has its strengths, and we’ll help you understand which features matter most for your specific circumstances.

Digital Record-Keeping Implementation

Moving from paper-based or spreadsheet systems to digital record-keeping requires careful planning. Our bookkeeping team will help you establish processes for capturing and categorising all your income and expenses digitally. This includes setting up bank feeds, receipt capture systems, and automated transaction categorisation.
We’ll also ensure your records meet HMRC’s functional requirements, including the ability to preserve digital records, provide audit trails, and generate the necessary reports for quarterly submissions.

Training and Support

Understanding how to use your new systems effectively is essential for ongoing compliance. We provide comprehensive training tailored to your skill level and business needs. This includes 121 training with ongoing telephone support to ensure you’re confident using your new digital tools.
Our 121 training covers everything from basic data entry to advanced reporting features, ensuring you can maximise the benefits of your new system.

Quarterly Submission Management

One of the biggest changes under MTD is the requirement to submit quarterly updates to HMRC. Our team can handle these submissions on your behalf, ensuring they’re accurate and submitted on time. We’ll review your records each quarter, identify any issues, and provide guidance on improving your processes.
For those who prefer to handle submissions themselves, we provide thorough checking services and support to ensure accuracy and compliance.

Ongoing Compliance Monitoring

MTD compliance isn’t a one-time setup – it requires ongoing attention to ensure your systems continue to meet HMRC’s requirements. Our bookkeeping team provides regular compliance reviews, software updates, and process improvements to keep you on track.
We stay up-to-date with all HMRC guidance and regulatory changes, ensuring you’re always compliant with the latest requirements.

The Benefits of Professional Support

Working with our experienced bookkeeping team offers several advantages over trying to handle MTD implementation alone:
Expertise and Experience: Our team has successfully transitioned all our VAT registered clients to MTD for VAT and is now applying that expertise to Income Tax requirements.
Time Savings: Rather than spending weeks researching software options and learning new systems, you can focus on running your business while we handle the technical implementation.
Reduced Risk: Professional setup and ongoing support significantly reduce the risk of compliance failures, penalties, and submission errors.
Improved Financial Management: MTD-compliant systems provide better insights into your business performance, helping you make more informed decisions.
Future-Proofing: We ensure your systems can adapt to future changes in MTD requirements and business growth.

Getting Started

The key to successful MTD implementation is starting early. Even if the requirements don’t apply to you immediately, beginning the transition now allows for a smooth, stress-free implementation without the pressure of looming deadlines.
Our structured approach begins with a free consultation to assess your current situation and discuss your specific needs. We’ll then provide a detailed implementation plan with clear timelines and costs, so you know exactly what to expect.

Beyond Compliance

While MTD compliance is the immediate goal, the benefits of digital record-keeping extend far beyond meeting HMRC requirements. Clients who work with our bookkeeping team often report improved cash flow management, better business insights, and reduced stress around tax obligations.
The quarterly review process also provides regular opportunities to discuss your business performance, identify trends, and make strategic decisions based on up-to-date financial information.

Taking the Next Step

Making Tax Digital for Income Tax doesn’t have to be overwhelming. With the right support and preparation, it can actually improve your business operations and financial management. Our experienced bookkeeping team is ready to guide you through every aspect of the transition, from initial planning to ongoing compliance.
Don’t wait until the last minute to prepare for these important changes. Contact us today to schedule your free MTD consultation and discover how we can help you turn compliance into a competitive advantage. Together, we’ll ensure you’re not just ready for Making Tax Digital – you’ll be thriving with it.