Making Tax Digital for Income Tax

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK’s tax system. Making Tax Digital for Income Tax – HMRC Guide

Instead of completing one Self Assessment tax return each year using paper records or spreadsheets, you’ll be required to:

• Keep digital records of your income and expenses.
• Use HMRC-compatible software.
• Submit quarterly updates to HMRC.
• Complete an End of Period Statement and Final Declaration each year.

The aim is to reduce errors, improve record keeping and give business owners a clearer picture of their tax throughout the year.

Who Needs to Comply?

Making Tax Digital currently applies to many:

• Sole traders
• Self-employed individuals
• Landlords

The rules are being introduced in stages based on your qualifying income.

If you’re unsure whether MTD applies to you, we’ll happily check and explain exactly what you need to do.

What Will You Need?

To comply with Making Tax Digital you’ll need:

✔ Digital bookkeeping records

✔ HMRC-compatible software

✔ Quarterly submissions

✔ End of year tax declaration

The good news is that once you’re set up, the process is usually much easier than people expect.

FREE MTD Software for Sole Traders

One of the biggest concerns for many business owners is paying for yet another software subscription.

As an IRIS Elements Cashbook partner, we’re pleased to offer FREE bookkeeping software to our sole trader clients.

You’ll be able to:

• Record your income and expenses digitally.
• Upload receipts and invoices.
• Keep everything organised throughout the year.
• Meet HMRC’s Making Tax Digital requirements.

No additional software subscription required.

We Can Manage Everything For You

Whether you’re confident with bookkeeping or would rather leave it to the professionals, we offer flexible support.

We can help with:

• Setting up your MTD software
• Bookkeeping
• Quarterly submissions
• Self Assessment tax returns
• End of year declarations
• Ongoing tax advice
• Business support

You decide how much you’d like us to do.

Self Assessment Tax Returns from £200 + VAT

Even under Making Tax Digital you’ll still need an end of year declaration.

Our Self Assessment service starts from just £200 + VAT, giving you peace of mind that everything has been completed accurately and submitted on time.

Why Choose Accountancy Solutions?

We’re a friendly, approachable accountancy practice based in Portchester, supporting businesses throughout Hampshire and beyond.

When you work with us you’ll benefit from:

✔ Qualified accountants

✔ Digital accounting specialists

✔ Personal service

✔ Clear, jargon-free advice

✔ FREE IRIS Elements Cashbook software for eligible sole trader clients

✔ Support throughout your MTD journey

No confusing jargon. No last-minute panic. Just straightforward advice from people who genuinely want to help.

Frequently Asked Questions

What is Making Tax Digital?

Making Tax Digital is HMRC’s system requiring businesses to keep digital records and submit tax information using compatible software.

Do I need special software?

Yes. HMRC requires compatible software to submit quarterly updates. We provide FREE IRIS Elements Cashbook software for our sole trader clients.

Can I still use spreadsheets?

Some spreadsheets can be used alongside bridging software, but most businesses find dedicated bookkeeping software much simpler.

Will I still complete a tax return?

You’ll complete a Final Declaration after submitting your quarterly updates.

Can you do it all for me?

Absolutely. We can manage everything from bookkeeping through to quarterly submissions and your year-end tax return.

Ready to Get Started?

Making Tax Digital doesn’t need to be overwhelming.

Whether you’re just finding out about MTD or you’re ready to start submitting quarterly updates, we’re here to help.

Get in touch today for a free, no obligation chat about Making Tax Digital.