Making Tax Digital (MTD) What It Means for You

Helping you stay compliant with HMRC’s digital tax requirements

Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system. It means that certain businesses and individuals must now keep digital records and submit tax information to HMRC using MTD-compatible software.

At RF Adams & Co Ltd, we help our clients stay ahead of the changes, stay compliant, and stay stress-free.

What is Making Tax Digital?

Making Tax Digital is a government initiative to move tax reporting and record-keeping online. It’s designed to reduce errors, improve efficiency, and make tax administration easier for businesses and individuals.

MTD requires you to:

Keep digital records of your income and expenses
Use approved software to send tax returns and updates to HMRC
Submit returns more frequently in some cases

Who Needs to Follow MTD?

As of now:

MTD for VAT

All VAT-registered businesses must keep digital VAT records and file VAT returns using MTD-compliant software.
This includes businesses under the VAT threshold (£90,000) who have voluntarily registered for VAT.

MTD for Income Tax (MTD for ITSA) – Coming Soon

Sole traders and landlords with gross income over £50,000 per year must follow MTD from April 2026.
Those earning between £30,000 and £50,000 will follow from April 2027.
You’ll need to send quarterly updates and an annual end-of-period statement using digital tools.

(Partnerships and limited companies will follow in future phases.)

How We Can Help?

At RF Adams & Co Ltd, we take the hassle out of MTD by:

Setting you up on MTD-compatible software (such as Xero or Dext)
Ensuring your digital records are accurate and up to date
Submitting your returns to HMRC on time, every time
Providing training or managing everything for you

Whether you want us to handle the entire process or support you with the right tools, we’re here to help.