Making Tax Digital is coming – Are you ready?

The introduction of Making Tax Digital (MTD) for the self-employed and/or landlords with combined income exceeding £50,000 is scheduled to take effect from April 2026.

MTD fundamentally shifts the way tax records are maintained and how information is submitted to HMRC. The traditional approach of annual tax returns will be replaced by a requirement to maintain digital records and submit updates to HMRC on a quarterly basis.

One of the key implications of this change is the need to adopt compatible software for recording income and expenses. The software will ensure that data is maintained accurately and that submissions are timely, reducing the risk of errors and potential penalties. For those unfamiliar with digital accounting solutions, the idea of implementing and navigating new systems may feel daunting. However, it is important to see this change not as a burden but as an opportunity to improve financial efficiency, gain real-time insights into your business performance, and reduce administrative stress in the long run.

At UHY Ross Brooke we are committed to guiding our clients through every step of this transition. Our service offering is tailored to meet the needs of businesses and landlords, whether you are starting from scratch with digital records or simply need to fine-tune your existing processes. One of the first steps involves helping you choose the right software. With so many options available, selecting the most suitable platform can be overwhelming. We offer personalised advice, taking into account the nature of your business, your existing processes, and your level of comfort with technology. From established brands to newer, innovative platforms, we can recommend solutions that align with your operational needs.

Setting up the chosen software correctly is just as important as selecting it. Our team can assist in the initial setup, ensuring that your records are correctly configured from day one. This includes creating the necessary account categories, linking bank feeds, and integrating any additional tools or apps you may require. Proper setup minimizes the likelihood of errors and provides you with a solid foundation for maintaining accurate records.

Once the set up is complete we can provide comprehensive training tailored to your level of familiarity with accounting and technology. Whether you need basic guidance or more in-depth instruction, our training sessions will enable you and your team to use the software effectively and independently.

For clients seeking ongoing support, we offer bookkeeping services including the recording of transactions, reconciliation of accounts, and preparation of quarterly updates for submission to HMRC. This service is designed to reduce the administrative burden on your end, giving you peace of mind that your records are being handled by professionals who understand the intricacies of MTD requirements.

When it comes to the submission of quarterly returns, accuracy and timeliness are key. Mistakes or delays could lead to penalties or complications with HMRC. By working with us, you can be confident that your returns will be prepared and submitted correctly and on time.

Overall, while the transition to MTD may feel like a significant shift, with proper planning, the right tools, and expert guidance, you can not only meet your compliance obligations but also enhance your financial processes and decision-making capabilities.

Rest assured our team is here to help guide you through the process. If you have any questions about how MTD will affect you or would like to discuss how we can support you please do not hesitate to get in touch.