What do I need to do for Making Tax Digital?
Businesses complying with MTD rules must keep digital records of their income and expenses, and use approved software to share this information with HMRC throughout the year. We provide Pandle Pro, our easy-to-use bookkeeping software, as standard so you can handle all your MTD record-keeping and reporting requirements from the same place. Learn more about preparing for MTD Income Tax.
These quarterly updates won't be finalised until you submit your tax return, so you (or your accountant) will be able to make any necessary adjustments first. Any other income you need to report, such as dividends, can also be added to your tax return, so everything is submitted together.
Registering for MTD
Any business which becomes VAT registered will be enrolled for MTD automatically. Those needing to join MTD Income Tax must register separately, even if they're already using MTD for VAT, or registered for Self Assessment. It's being introduced in stages so not everyone will need to use MTD IT straight away - but don't leave it till the last minute!
- Choose software compatible with MTD Income Tax
- Use the GOV.UK online service to register
Accountants for Making Tax Digital
Rather than charging you for services you might not use, we offer extra services you can add if you think your business needs them. That said, every business must submit an annual tax return so these are included as standard in all our packages!
Our sole trader accounting services start from £24.50 and include either MTD Income Tax or Self Assessment depending on which you need. Directors can add this option to their company fees for £10.00 per month.
Anyone using MTD Income Tax must send quarterly updates about their qualifying income and expenses. You can send these yourself throughout the year and have your accountant take care of your tax return as normal, or add support with quarterly submissions for £35.00 per month.
