Making Tax Digital

MTD is no longer on the horizon: it already governs VAT for all registered businesses, and since April 2026 it is mandatory for sole traders and landlords with qualifying income over £50,000. If that's you — or will be when the threshold drops — we'll get your records digital, your software right and your filings automatic.

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC's programme to digitise the UK tax system. It requires businesses and landlords to keep digital records of transactions, maintain digital links between software and records (no manual re-keying), and submit returns directly from MTD-compatible software to HMRC. Done well, it's more than compliance — real-time digital records give you better numbers to run the business on.

MTD for VAT

MTD for VAT applies to all VAT-registered businesses, whatever their turnover — every VAT return must be filed through compatible software from digital records. (VAT registration itself becomes compulsory when taxable turnover exceeds £90,000.) We handle MTD VAT setup, digital record-keeping, return preparation and submission through Xero, Sage or QuickBooks, plus compliance reviews of your digital links.

MTD for Income Tax — Now Live

MTD for Income Tax became mandatory on 6 April 2026 for sole traders and landlords whose qualifying income (gross self-employment plus property income) exceeded £50,000 in 2024/25. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.

In scope, you must keep digital records and file quarterly updates through MTD-compatible software, with a final year-end submission. If you've been mandated and aren't yet compliant, act now — we run the whole cycle: sign-up, software, quarterly filings and year-end.

MTD for Corporation Tax

No start date has been announced for MTD for Corporation Tax. There's nothing to file yet — but choosing MTD-ready software and clean digital processes now means no scramble later, and we factor this into every systems recommendation we make.

MTD-Compatible Software

We support all major HMRC-recognised platforms: Xero (we hold Xero Gold Partner status), Sage (50, 200 and Business Cloud), QuickBooks (Online and Desktop) and other approved tools. We'll recommend the best fit for your business, migrate your records and train your team.

How to Comply with Making Tax Digital

1. Determine your obligations: all VAT-registered businesses are in MTD for VAT; sole traders and landlords are in MTD for Income Tax from April 2026 (£50,000), April 2027 (£30,000) or April 2028 (£20,000).

2. Choose compatible software — we advise and implement.

3. Set up digital record-keeping with proper digital links between systems.

4. Sign up for MTD with HMRC and authorise your software.

5. Submit returns and quarterly updates digitally — paper returns are not accepted for MTD obligations.

6. Stay compliant: MTD late-submission penalties accrue on a points system, so consistent, on-time filing matters. We monitor every deadline for you.

What You Get With Acumon

• Xero Gold Partner — setup, migration and training included
• MTD for Income Tax sign-up, quarterly updates and year-end filings handled
• MTD-compliant VAT returns for all VAT-registered businesses
• Digital-links reviews so your record-keeping passes HMRC scrutiny
• Deadline monitoring — no penalty points, no surprises
• Seamless integration with our bookkeeping and tax services

Why Acumon for Making Tax Digital?

• Acumon holds Xero Gold Partner status
• Supports Xero, Sage, QuickBooks and other HMRC-recognised MTD software
• Handles MTD for VAT and MTD for Income Tax registrations, quarterly updates and filings

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.