Making Tax Digital

At Professional Accountants, we help businesses and across the UK transition seamlessly to HMRC’s Making Tax Digital (MTD) regime.

Whether you’re a VAT-registered sole trader, limited company, landlord, or multi-entity group, complying with MTD is now a legal requirement, and getting it right means fewer headaches, faster submissions, and better financial clarity.

Our team provides expert guidance, software setup, and end-to-end digital filing support so you can stay compliant and focused on growing your business.

What Does Making Tax Digital Support Cost?

The cost of Making Tax Digital (MTD) support ranges from £250 to over £1,500 per year, depending on your business size, turnover, and the complexity of your digital reporting needs.

Costs are mainly influenced by factors such as the type of MTD service required (VAT, Income Tax, or Corporation Tax), bookkeeping volume, software setup, and ongoing submission support.

Contact Professional Accountants to get customised prices for managing your digital tax compliance with ease.

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Which Businesses Are Affected by MTD for VAT, Income Tax, and Corporation Tax?

Making tax digital (MTD) impacts a wide range of businesses, depending on their registration type, income level, and structure, including:

• VAT-registered businesses – All businesses registered for VAT, regardless of turnover, must maintain digital records and file VAT returns using MTD-compatible software.

• Sole traders earning over £50,000 – From April 2026, self-employed individuals above this income threshold must comply with MTD for Income Tax.

• Landlords with property income over £50,000 – Those meeting the same threshold must also submit quarterly digital updates for rental earnings.

• Self-employed individuals earning over £30,000 – From April 2027, MTD for Income Tax will extend to this group.

• Partnerships – General partnerships are expected to join MTD requirements in later rollout phases following sole traders and landlords.

• Limited companies – Corporation Tax is anticipated to move under MTD in future, requiring digital recordkeeping and online CT600 submissions.

• Businesses transitioning from manual or spreadsheet records – Any business not yet using digital accounting tools will need to migrate to MTD-approved software.

• Accountants and agents managing client submissions – Firms handling multiple tax returns must also use MTD-compliant systems for digital filings.

How Do You Transition From Manual Records to Digital Submissions?

Transitioning to making tax digital services involves choosing compatible software, digitising your financial records, and integrating your systems with HMRC’s MTD platform.

A local accountant can assist with migrating your data, training your team, and ensuring all transactions—sales, expenses, VAT, and income—are correctly logged. For many businesses, this is a valuable opportunity to streamline accounting processes and gain real-time insights into cash flow and tax liabilities.

Do MTD Services Include Software Setup, Filing, and Training?

Comprehensive making tax digital services typically include everything from cloud software setup (such as Xero, QuickBooks, or Sage) to staff training, digital recordkeeping guidance, and quarterly or annual filing.

Accountants also offer support in setting up your HMRC MTD account, linking it with your software, and troubleshooting any issues that arise during submission periods. These services are especially useful for businesses transitioning from spreadsheets or paper-based systems.

Is Outsourcing MTD Compliance a Cost-Effective Way to Avoid Penalties?

Outsourcing your Making Tax Digital obligations is often far more cost-effective than managing them in-house—especially if your team lacks the time or software skills to ensure accuracy.

Late or incorrect submissions can result in financial penalties and missed deadlines. By working with a specialist, you reduce compliance risk while freeing up resources to focus on business growth. Many firms also find that professional support leads to improved reporting accuracy and better financial decision-making.

Can MTD Software Be Integrated With Your Current Accounting System?

Most making tax digital-compliant software platforms can integrate with your existing accounting tools, especially if you’re already using cloud-based systems.

Businesses can benefit from seamless imports, bank feeds, and automation features that reduce manual data entry. Your accountant can assess your current system and recommend upgrades or add-ons to ensure full compliance without disrupting your current workflows.

Contact Professional Accountants for a consultation to get making tax digital services.

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What Are the Deadlines and Legal Requirements for MTD Submissions?

For VAT-registered businesses, making tax digital returns must be submitted quarterly through compatible software by the relevant filing deadlines. Income Tax and Corporation Tax deadlines will follow a similar pattern once phased in.

HMRC requires that digital records be kept for six years and that all returns be submitted through their MTD interface. It’s crucial to stay ahead of any changes to avoid non-compliance and associated fines.