Making Tax Digital Accountant London

Making Tax Digital (MTD)

Making Tax Digital (MTD) requires sole traders and landlords with qualifying income over £50,000 to keep digital records and send quarterly updates to HMRC using compatible software. The threshold reduces to £30,000 from April 2027 and £20,000 from April 2028.

Whether you are VAT-registered, self-employed, a landlord or running a small business in London, I help you stay fully compliant, reduce stress and make the most of modern accounting software.

What Is Making Tax Digital

Making Tax Digital is HMRC’s system for digital tax record-keeping and reporting. It requires you to:

• Keep digital records of your income and expenses
• Submit quarterly updates (short summaries, not full tax returns)
• File your year-end tax return through MTD-compatible software

Benefits include fewer errors, clearer cash-flow visibility and real-time insights into your finances. The main challenges are choosing the right software and meeting the quarterly deadlines.

All VAT-registered businesses must already use MTD-compatible software to keep digital records and submit VAT returns. This has been mandatory for all VAT-registered businesses since April 2022 (and earlier for those above the threshold).

MTD for Income Tax covers sole traders and landlords. Your start date depends on your total gross income from self-employment and property (before expenses), based on your previous tax return.

Qualifying Income - Start Date

Over £50,000  - 6 April 2026

Over £30,000  - 6 April 2027

Over £20,000 - 6 April 2028

Qualifying income = total gross income from self-employment + property (before expenses), based on your previous tax return.

Typical quarterly periods & deadlines (tax year starting 6 April):

• 6 Apr – 5 Jul → due 7 August
• 6 Apr – 5 Oct → due 7 November
• 6 Apr – 5 Jan → due 7 February
• 6 Apr – 5 Apr → due 7 May

In the 2026/27 tax year there are no penalty points for late quarterly updates, but you should still file on time.

MTD Advice

Small businesses and self-employed individuals should prepare for Making Tax Digital UK requirements for income tax reporting.

To stay compliant with Making Tax Digital UK, you'll need to use HMRC-approved software for maintaining financial records and submitting tax information. Simplifying your tax reporting by requiring digital record-keeping and online submissions.

The key is to start preparing now - don't get caught off guard! Keeping accurate digital accounting records makes submitting your tax return at the end of the accounting period more straightforward.

How I Help You Prepare for (and Stay Compliant with) Making Tax Digital

As a certified instructor and experienced London accountant, I make the transition straightforward:

• Software Selection: Xero, QuickBooks Online, Sage and other HMRC-recognised options tailored to your needs.
• Digital Record Keeping: Systems that meet HMRC requirements from day one.
• Quarterly Updates: accurate, timely submissions managed for you or with your involvement.
• Training: practical, personalised sessions so you (or your team) feel confident.
• Ongoing Support: questions answered quickly and compliance maintained year-round

I have already guided many clients through MTD for both VAT and Income Tax. Whether you are not yet VAT-registered or need help choosing and setting up software, I can support you.

Why Choose Andrew Passer for Your MTD Needs?

• Local expertise serving Stanmore, Edgware, Harrow, Finchley, North West London and Greater London area
• Clear, jargon-free advice
• Full training and hands-on help
• Focus on peace of mind so you never worry about getting it wrong

Experienced and committed to providing exceptional service to help you manage your finances more effectively.

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Institute of Financial Accountants

The Institute of Financial Accountants (IFA) is an internationally recognised professional accountancy membership body providing dedicated support to SMEs and SMPs.