Making Tax Digital: What It Means for You and Your Business
MTD explained clearly – and how Advisifi will help you every step of the way.
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC’s plan to move all tax reporting online. It’s designed to make tax simpler, more accurate and easier to keep on top of — but it does mean that businesses need to keep their records in a specific way.
Under MTD, you’ll need to:
Keep digital records of your income and expenses.
Send quarterly updates to HMRC using approved software.
Submit a final declaration each year instead of a single annual tax return.
The idea is to reduce errors, save time, and give you a clearer picture of your business performance throughout the year.
When does MTD apply?
MTD has already been rolled out for VAT-registered businesses, but the next phase affects self-employed individuals and landlords.
From April 2026, self-employed people and landlords with income over £50,000 will be required to register. From April 2027, it will then affect self-employed people and landlords with income over £30,000. Finally, from April 2028, it will then affect self-employed people and landlords with income over £20,000.
These thresholds are based on gross income, not profit — so even if your business expenses are high, you may still be caught by the new rules.
What does this mean for you?
If you’re already using cloud accounting software such as QuickBooks or Xero, you’re part of the way there — but you’ll still need to make sure it’s set up correctly and fully compliant with MTD rules.
If you currently keep your books in Excel or on paper, you’ll need to move to compatible software before the rules come into effect.
Under MTD:
You’ll send updates to HMRC every three months instead of once a year.
Your accounting records must be kept digitally.
You’ll confirm your annual figures via a single year-end submission.
While it might sound like more admin, it actually makes things easier in the long run — keeping your tax up to date, avoiding surprises, and giving you a clearer view of your numbers.
How Advisifi will help
We’ve been preparing for MTD well in advance. At Advisifi, we:
Already use fully MTD-compliant software for bookkeeping and tax submissions.
Can set up or migrate your system so it’s ready before the new rules kick in.
Handle quarterly updates and submissions for you — so you don’t have to worry about deadlines.
Offer different levels of support depending on how hands-on you want to be with your bookkeeping.
Whether you want us to take care of everything, or you prefer to do some yourself, we’ll make sure you stay compliant, confident and stress-free.
Why it matters
Making Tax Digital isn’t just about compliance — it’s an opportunity to make your finances clearer, faster and more useful.
By keeping digital records and updating HMRC quarterly, you’ll:
Always know how your business is performing.
Get a real-time idea of your upcoming tax bills.
Avoid last-minute scrambles at year-end.
Spend less time on admin and more time running your business.
It’s about working smarter, not harder.
What you should do next
Check your income – if you’re close to or over the MTD thresholds, get ready now.
Review your bookkeeping – are you still using spreadsheets or manual records? If so, it’s time to switch.
Talk to us early – we’ll guide you through your options, help set up the right software, and plan your move smoothly.
The sooner you get set up, the easier the transition will be.
In summary
MTD is coming — but with the right setup, it doesn’t need to be complicated. Advisifi will handle the technical side, keep you compliant, and help you make the most of the digital tools available.
We’ll take care of the deadlines, software and submissions, so you can focus on what matters: running your business.