Making Tax Digital (MTD) support for small businesses
Making Tax Digital (MTD) is HMRC’s initiative to move businesses and landlords onto digital record-keeping and online submissions. It’s already here for VAT, and it will soon expand to other types of tax — including Income Tax Self Assessment (ITSA) from April 2026.
For many small businesses, MTD feels confusing and overwhelming. Do you need new software? What happens to spreadsheets? How often will you need to send updates? And what happens if you get it wrong?
At Books & Business, we make MTD simple. We’ll set up the right software, keep your records compliant, and submit your returns on time — so you never have to worry about the technical side.
What is Making Tax Digital?
Making Tax Digital (MTD) is a government programme requiring businesses and individuals to:
- Keep digital records (spreadsheets alone won’t be enough).
- Use HMRC-approved software such as QuickBooks, Xero, or FreeAgent etc.
- Submit returns and updates online via that software.
The goal is to make tax reporting more accurate and efficient — but for many business owners, it just adds another layer of admin.
That's where we step in.
Who Does MTD Apply to?
- VAT-registered businesses – MTD for VAT is already mandatory for almost all VAT-registered businesses.
- Sole traders & landlords – from April 2026, MTD will also apply to anyone earning over £50,000 from business or property income. This is known as MTD for ITSA.
- Other taxes – HMRC plans to extend MTD further in the future.
Why MTD matters
Missing deadlines or failing to comply with MTD rules can mean:
- HMRC penalties for late submissions.
- Additional costs if your records aren’t digital-ready.
- Stress and wasted time trying to figure out unfamiliar software.
With our help, you don’t need to worry about any of this.
How we help with MTD
At Books & Business, we make sure MTD is handled smoothly for you. Our service includes:
- Setting you up with MTD-approved software such as QuickBooks, Xero or FreeAgent.
- Monthly bookkeeping so your records are always digital and accurate.
- Preparing and submitting VAT returns and tax updates directly to HMRC.
- Clear explanations so you understand what’s changing — in plain English.
- Reminders and check-ins so nothing is ever left to the last minute.
The easy way to be MTD-ready
You don’t have to get lost in HMRC guidance or spend hours learning new software. We’ll do the setup, keep your records compliant, and take care of every submission.
Book your free 15-minute discovery call today and let us take the stress out of Making Tax Digital.
Important note:
Our ability to file on time depends on clients providing information promptly. We’ll always send reminders and chase for paperwork, but late delivery of records may affect filing deadlines.
FAQs About Making Tax Digital
Do I need new software for MTD?
If you already use QuickBooks, Xero, FreeAgent, or other HMRC-approved software, you’re ready for MTD. If not, we’ll help you choose and set up the right system.
When does MTD for Income Tax Self Assessment (ITSA) start?
MTD for ITSA begins in April 2026 for sole traders and landlords with income over £50,000. It will be extended to more businesses in future.
Can I still use spreadsheets?
Spreadsheets alone won’t be enough for MTD. You’ll need software that connects to HMRC to submit your updates — but we can integrate spreadsheets into MTD software if you prefer.
What happens if I miss an MTD deadline?
Late or incorrect submissions can result in HMRC penalties. That’s why we send reminders, chase paperwork, and file everything on time for you.
Is MTD only for VAT?
No — it started with VAT but is expanding to cover Income Tax and will likely apply to other taxes in future.
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