What is Making Tax Digital?

Making Tax Digital (MTD) is part of the government’s plan to modernise the UK tax system, making it easier for people to get their tax right. The legislation applies to two taxes – MTD for VAT, and MTD for Income Tax.

What’s changing under MTD for Income Tax?

Digital Record Keeping

Income and expenses records must be kept digitally, in MTD-compliant software.

Quarterly updates

Instead of a single annual return, you’ll need to send four quarterly updates on income and expenditure.

Final declaration

Once you’ve submitted four quarterly updates, you’ll need to finalise your income with a final declaration.

Why MTD Compliance Matters

Making Tax Digital (MTD) is HMRC’s initiative to digitize tax reporting, ensuring businesses keep digital records and submit tax returns using approved accounting software. Currently, MTD applies to VAT-registered businesses, but it’s expanding to Income Tax Self Assessment (ITSA) from April 2026 for self-employed individuals and landlords earning over £50,000.

Failing to comply can lead to:
- Penalties from HMRC
- Unnecessary stress managing digital records
- Missed opportunities for tax savings and financial planning

How MRJ & Co. Can Help...

MRJ & Co. MTD expertise can provide:
✔ Seamless Compliance – Ensuring your financial records meet MTD regulations
and helping you avoid penalties
✔ MTD-Approved Software Setup
✔ Time & Cost Savings – Reducing tax errors, maximising deductions, and
improving financial efficiency
✔ Ongoing Support – Keeping you updated on future tax law changes and MTD updates.

Here's what one of our customers had to say...

" Start up business and personal tax. MRJ & Co. provides exceptional and incredibly helpful advice for my business. They are extremely helpful and knowledgeable and takes a real interest in my business. I trust MRJ & Co., their work and advice completely. My business is running smoothly with all the support and advice from MRJ & Co. "

Grace, London
September, 2015

Services

Accounting
Book keeping
Tax
Self assessment
Payroll
Business start-up
Construction Industry Scheme (CIS)

Address: 1 Edinburgh Mews, Watford,WD19 4FS
Phone: 01923 250 880
Fax: 01923 836 668
Email: info@mrjandco.co.uk