Making Tax Digital accountant

The summaries of income and expenses MTD requires every three months — replacing the single annual return rhythm for mandated taxpayers.

Tools that connect spreadsheets to HMRC's systems, keeping spreadsheet workflows legal under MTD's digital-records rules.

The year-end submission that finalises your position under MTD for Income Tax — the successor to the traditional return.

Matching your books to the bank, transaction by transaction — the discipline that makes every other number trustworthy.

The category structure your transactions are coded into. A generic one makes reports vague; a tailored one makes them useful.

Who owes you and whom you owe, banded by how overdue — the two lists that predict cash flow problems before the bank balance does.

Your Unique Taxpayer Reference — the 10-digit number HMRC issues when you register for Self Assessment. Lifelong, and needed for every return.

Advance payments toward next year's tax, due 31 January and 31 July, triggered once your bill passes £1,000. The first year they apply effectively bills 150% at once.

Add your gross self-employment and property income together: over £50,000 means April 2026, over £30,000 means April 2027 — measured from your latest filed return. Below that, the January return continues for now. VAT-registered businesses are already in MTD for VAT.

You need MTD-compatible digital records, which means recognised software or spreadsheets connected through bridging software. Costs range from free (FreeAgent with some bank accounts) to ~£15/month. Part of our setup is picking the cheapest option that genuinely fits — not the one with the biggest ad budget.

A points-based penalty system for missed quarterly updates, on top of the existing late-filing regime for the final declaration. More practically: four rushed deadlines a year instead of one is a bad life upgrade to improvise. Early setup converts it into background noise.

For Income Tax: April 2026 if your combined self-employment and property income is over £50,000; April 2027 for over £30,000. VAT-registered businesses have been in MTD for VAT for years already. The income test uses your most recent filed return — which surprises people whose income fluctuates around the line.

Three things: records must be kept digitally (spreadsheets need bridging software), a summary update goes to HMRC every quarter, and a final declaration replaces the traditional return. Same tax, different rhythm — the risk isn't paying more, it's missing quarterly deadlines that never existed before.

It genuinely depends: FreeAgent suits contractors and is free with some business bank accounts; Xero scales best for growing businesses with staff and stock; QuickBooks sits between on price and features. We recommend against whatever doesn't fit — we don't earn from your subscription either way.

History comes too: opening balances, customer and supplier records, unpaid invoices, and usually one to two years of transactions. The test of a good migration is that your first VAT return after the switch reconciles without drama — that's the standard we work to.

Xero, QuickBooks or FreeAgent — whichever suits your business (or whichever you already use). Software subscription can be included in your monthly fee, and we handle all the setup and migration.

Each line on your bank statement — a payment in or out. Most one-person businesses sit comfortably under 50 a month. If you drift over your band we'll tell you before the fee changes, never after.

Preparation and online filing of your full SA100 return, including the supplementary pages your situation needs. If your return is more complex — rental income, capital gains — the packages above show the fixed price, and we confirm it in writing before starting.

Yes. Late returns are common and fixable: we prepare and file the outstanding return quickly, and where there's a reasonable excuse we help you appeal penalties. The sooner it's filed, the sooner the penalties stop growing.