Making Tax Digital (MTD) For Tax Compliance

Making Tax Digital (MTD) is a government-led initiative transforming how tax is reported in the UK. With 20 years of experience, Apex Accountants, trusted digital tax accountants, simplify your digital transition with expert-led guidance. Whether you’re a landlord, sole trader, or growing business, we help you stay compliant and reduce errors.

Our making-tax-digital services include software setup, digital record-keeping, VAT and Income Tax Self-Assessment (ITSA) submissions, and ongoing HMRC-compliant support. We design all of these services to save you time and provide complete peace of mind.

How Our Making Tax Digital Accountants Ensure Compliance

Apex Accountants offers comprehensive MTD compliance services designed to meet the specific requirements of your business. Our team of Making Tax Digital accountants provides: 

• Making Tax Digital-compatible software setup: We assist in setting up the most suitable MTD software tailored to your business needs. 
• Quarterly submission support: Ensuring timely and accurate submission of your tax information to HMRC. 
• Digital record-keeping solutions: Helping your business maintain seamless, up-to-date digital records. 

MTD for ITSA – Get Ahead with Apex Accountants

From April 2026, landlords and self-employed individuals earning over £50,000 must switch to MTD for ITSA. Those earning between £30,000 and £50,000 follow in 2027. Apex Accountants offers expert making-tax-digital ITSA setup, quarterly filing, and HMRC-approved software integration. Whether managing rental properties, contracting, or running a small business, our digital tax accountants ensure a smooth, stress-free transition.

Emphasising the Shift to Quarterly Reporting (ITSA)

One of the most significant changes under making-tax-digital for ITSA is the move from annual tax returns to quarterly reporting. This means businesses and individuals must submit a summary of their income and expenses to HMRC every three months, followed by a final declaration at year-end. Apex Accountants helps you adapt to this new pace by setting up efficient digital systems, maintaining timely submissions, and keeping your tax obligations under control throughout the year—not just at year-end.

Tax Payment Deadlines Remain the Same

While reporting frequency is increasing under Making Tax Digital for ITSA, it’s important to note that the actual tax payment deadlines have not changed. You will still pay your tax by 31 January and, where applicable, make payments on account by 31 July. Apex Accountants helps you stay on track with both reporting and payment schedules, giving you clarity and control over your financial obligations year-round.

What’s Excluded from Making Tax Digital for ITSA?

While Making Tax Digital for Income Tax Self-Assessment applies to most landlords and self-employed individuals, certain types of income and taxpayers are currently excluded. These include individuals with total income under £30,000, partnerships, and limited companies—for now. Dividends, savings interest, and pension income are not reported through the Making Tax Digital for the ITSA system. Apex Accountants informs you of what falls outside the scope and submits only the relevant data to HMRC—accurately and on time.

VAT and Income Tax Self-Assessment (ITSA) Requirements

The Making Tax Digital (MTD) initiative requires businesses, landlords, and self-employed individuals to use approved MTD-compatible software to submit VAT returns and Income Tax Self-Assessment (ITSA) digitally. At Apex Accountants, we provide expert support to help you meet these obligations with minimal disruption—keeping your records accurate, submissions timely, and processes fully compliant.

We guide you through selecting the right software, setting up digital record-keeping, and managing ongoing HMRC submissions—all under one tailored solution.

Key MTD implementation dates include:

• April 2019: VAT-registered businesses with taxable turnover above £85,000 are required to use MTD software.
• April 2022: All VAT-registered businesses, regardless of turnover, must follow Making Tax Digital UK guidelines for VAT.
• April 2026: Making Tax Digital for Income Tax Self-Assessment will apply to self-employed individuals and landlords with income exceeding £50,000.
• April 2027: HMRC will lower the income threshold for making-tax-digital for ITSA to include those earning between £30,000 and £50,000.
• April 2028: HMRC plans to extend MTD for ITSA to individuals with an annual income over £20,000, pending a successful rollout and review of previous phases.

Act early to avoid stress and penalties. Our experienced MTD accountants offer proactive guidance every step of the way.

Comprehensive MTD Software Options 

There are two categories of Making Tax Digital software that businesses can adopt: 

1. Comprehensive Accounting Software:  

Platforms like QuickBooks, Xero, and Sage provide complete solutions for VAT returns and income tax submissions. These user-friendly platforms integrate seamlessly with other financial systems and ensure full MTD compliance support. 

2. Bridging Software: 

This connects existing spreadsheets or non-MTD-compliant software to HMRC’s system, ensuring your business remains compliant without overhauling your entire financial system. 

What Digital Records Must Include

Under Making Tax Digital rules, paper-only records are no longer acceptable. Businesses must keep and maintain specific records digitally using compatible software. This includes:

• Designatory data – Your business name, address, and VAT or tax registration number
  
• Income and expense details – A digital record of every transaction, including amounts and categories
  
• Dates and descriptions – The date and nature of each supply made or received
  
• Digital links – Automated links between different software platforms or spreadsheets, avoiding manual copy-pasting
  

At Apex Accountants, we help you set up compliant digital record-keeping systems tailored to your business. Whether you’re using full accounting software or bridging tools, we make sure your data is stored securely and is always ready for submission to HMRC.

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How Apex Accountants Ensures Making Tax Digital Compliance 

At Apex Accountants, we are experts in Making Tax Digital (MTD) and provide tailored solutions to help businesses: 

• Choose the right making tax digital software based in the UK for your business size and needs. 
• Manage digital record-keeping and VAT returns. 
• Offer ongoing MTD compliance services to ensure your business stays up-to-date with HMRC regulations. 

Preparing for Future Making-Tax-Digital Compliance 

Early preparation is key to ensuring a smooth transition to Making Tax Digital. By adopting the system early, businesses can reduce errors, improve efficiency, and avoid potential penalties from HMRC. Apex Accountants offers services that include: 

• Assessing your current tax processes and recommending the most suitable MTD software UK. 
• Providing staff training to ensure your team is well-versed in using digital record-keeping systems. 
• Offering long-term support to guarantee full MTD compliance services. 

Our experienced MTD accountants guide you from setup to submission, helping you avoid costly mistakes.

Benefits of Early Adoption 

Businesses that prepare for Making Tax Digital (MTD) ahead of the deadlines can enjoy: 

• Time to evaluate and implement the right digital tax software. 
• A gradual transition, allowing for team training and process familiarisation. 
• Reduced risk of penalties due to missed deadlines or incorrect submissions. 

Automatic Making Tax Digital Enrolment for New VAT Businesses 

Newly registered VAT businesses are automatically enrolled into the Making Tax Digital UK system when registering through HMRC’s VAT Registration Service. However, businesses must ensure that they choose and set up the appropriate Making Tax Digital software in the UK to manage their digital tax records. 

Apex Accountants can help by: 

• Recommending the most suitable making tax digital software for your business. 
• Providing comprehensive training for digital record-keeping. 
• Ensuring ongoing MTD compliance support to keep your business up to date with evolving regulations. 

MTD Accounting Services That Keep You Compliant and Confident

At Apex Accountants, our MTD accounting services go beyond basic compliance. We provide tailored digital solutions that align with your unique business setup—whether you’re managing rental income, running a limited company, or operating as a sole trader. From selecting and integrating HMRC-recognised software to maintaining real-time digital records and submitting accurate returns on time, we manage the entire process for you. 

Our digital record-keeping systems create a continuous compliance cycle, where your financial data is consistently updated, reviewed, and ready for submission—reducing last-minute stress and the risk of penalties. Our proactive approach cuts down on manual errors and gives you more time to focus on growing your business with confidence.

Why Choose Apex Accountants for Making Tax Digital Compliance?

Choosing Apex Accountants means choosing peace of mind. With nearly two decades of experience, we provide hands-on support that keeps your VAT and income tax submissions accurate, timely, and fully compliant with Making Tax Digital UK. Our expert team integrates the right digital tools into your workflow, reducing errors and saving you time. Our digital tax accountants take care of every aspect of your making-tax-digital obligations so you stay ahead of HMRC requirements.

Ready to prepare your business for Making Tax Digital? Apex Accountants offers expert guidance and long-term support to ensure seamless compliance.