HMRC Making Tax Digital initiative is transforming the way individuals and businesses manage their tax affairs in the UK. As part of the government’s wider digital strategy, MTD aims to make tax administration more effective, efficient, and easier for taxpayers to get their tax right.
At Walden Way & Co, we are committed to helping our clients stay informed and fully compliant with the latest HMRC requirements. Here’s everything you need to know about MTD and how it might impact you or your business.
What Is Making Tax Digital (MTD)?
Making Tax Digital is an HMRC-led programme that requires businesses and individuals to:
- Keep digital records of their income and expenses
- Use compatible accounting software to submit tax data
- Send updates to HMRC every quarter rather than annually
MTD is designed to reduce errors and improve accuracy, making tax easier for everyone involved.
Who Is Affected?
MTD for VAT is already mandatory for all VAT-registered businesses, regardless of turnover.
MTD for Income Tax Self Assessment (ITSA) will apply from:
- April 2026 for self-employed individuals and landlords with annual income over £50,000
- April 2027 for those earning between £30,000 and £50,000
If your income is below £30,000, MTD does not apply yet, but it’s important to start preparing.
Key Dates to Remember
| Date | Requirement |
| April 2019 | MTD for VAT started for businesses above VAT threshold |
| April 2022 | MTD for VAT extended to all VAT-registered businesses |
| April 2026 | MTD for ITSA begins for income > £50,000 |
| April 2027 | MTD for ITSA extended to income between £30k–£50k |
What You Need To Do Now
- Assess your current income level
Determine whether you fall under the income thresholds for MTD. - Switch to digital bookkeeping
Use MTD-compatible accounting software such as QuickBooks, Xero, or Sage. - Keep digital records
Start maintaining clear, up-to-date digital records of all transactions. - Quarterly submissions
Prepare to send digital tax updates to HMRC four times a year instead of once.
How Walden Way & Co Can Help
At Walden Way & Co, we assist clients in making a seamless transition to Making Tax Digital by:
- Helping you choose and set up the right accounting software
- Training your team on MTD-compliant record keeping
- Handling your quarterly submissions and digital tax filings
- Providing ongoing tax advisory and support
Whether you’re a sole trader, landlord, or growing business, we are here to help you stay compliant and confident.
Stay ahead of HMRC changes with Walden Way & Co – Your Trusted Tax & Accounting Partner.
Useful Resources
Visit the official campaign page: HMRC Making Tax Digital
