Making Tax Digital (MTD) has changed the way businesses, sole traders, and landlords manage their tax and for many, it’s still unclear what’s required and when. But don’t worry, you’re not the only one trying to make sense of it.
At Archimedia Accounts, we’ve been helping clients navigate tax complexity for over 30 years. We’re Xero-certified, MTD-ready, and here to make the transition as straightforward as possible, whether you’re already dealing with MTD for VAT, preparing for MTD for Income Tax, or simply trying to understand what’s coming and when.
This is one part of our wider taxation services offering. If you’re unsure where Making Tax Digital fits into your overall tax picture, get in touch and we’d love to talk you through it.
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Does Any of This Apply to You?
- You’re VAT-registered and want to make sure your MTD setup is correct
- You’re a sole trader or landlord and want to understand whether MTD for Income Tax applies to you
- You’re currently using spreadsheets or paper records and know that needs to change
- You’ve heard about Making Tax Digital but aren’t sure what it actually means for your business
- You want to get ahead of the changes before HMRC requires you to act
MTD affects a growing number of people, and the scope is only widening. Getting clarity now makes the transition far smoother later.
What Is Making Tax Digital?
Making Tax Digital is HMRC’s initiative to move the UK tax system fully online. The goal is to reduce errors, close the tax gap, and give businesses a more real-time view of their tax position. In practice, it means:
- Keeping digital records of your income and expenses
- Using MTD-compatible software to manage those records
- Submitting regular digital updates to HMRC instead of relying on a single annual return
MTD has been rolled out in phases and continues to expand. The rules around who must comply (and when) do change over time, which is one of the reasons having an accountant who stays on top of this can make things much easier.
Who Does MTD Apply To?
HMRC’s Making Tax Digital rollout covers several different taxes, each with its own rules and thresholds. At any given time, MTD may apply to you based on your business structure, your income, and whether you’re VAT-registered.
MTD for VAT is already in effect for all VAT-registered businesses. If you’re VAT-registered, you must keep digital records and submit VAT returns through MTD-compatible software.
MTD for Income Tax applies to sole traders and landlords whose gross income exceeds HMRC’s current threshold. Under MTD for Income Tax, quarterly updates replace the traditional annual Self Assessment approach. Income thresholds and implementation dates have evolved since MTD was first introduced and may continue to do so, but we make sure our clients always know exactly where they stand.
MTD for Corporation Tax is still in development. We’ll keep you updated as HMRC confirms further details.
Not sure which of these applies to you right now? That’s exactly what we’re here to help with. Get in touch and we’ll give you a clear answer based on your current situation.
Our Making Tax Digital Services
MTD Software Setup and Support
We set up Xero around how your business actually works, make sure it connects properly with HMRC, and show you how to use it day-to-day. The aim is simple, it fits into your routine without slowing you down.
If you’re using spreadsheets or older systems, we can also use bridging software so you don’t have to change everything overnight.
Digital Record-Keeping
We help you move to a digital setup that’s accurate and HMRC-compliant. More importantly, it gives you a clear view of your numbers throughout the year, not just when it’s time to file.
Quarterly Updates and Submissions
MTD replaces the yearly rush with regular updates. We handle the submissions for you, keep everything on track, and make sure nothing gets missed.
MTD Tax Advisory and Planning
We don’t just focus on compliance. We use your digital setup to spot opportunities, plan ahead, and help you stay as tax efficient as possible.
Why Get Help With MTD?
The penalties for non-compliance are real, and HMRC’s approach to enforcement is becoming increasingly strict. But there is a genuine upside to getting this right beyond avoiding penalties: better records mean fewer errors, a clearer view of your cash flow, and less stress at tax time.
The businesses that find MTD most painful are the ones who leave it until the last minute. Those who get ahead of it, with the right software and support, usually find it makes managing their finances easier, not harder.
We’re here to make sure you’re in that position from the start.
Quick Answers on Making Tax Digital
MTD isn’t optional for many businesses anymore, but the rules aren’t always clear.
- You don’t have to use an accountant, but it makes things far simpler
- You’ll need MTD-compatible software like Xero
- Non-compliance leads to penalties that build over time
- Submitting online doesn’t always mean you’re compliant
- Whether MTD applies depends on your income and setup
If you’re unsure where you stand, we’ll give you a straight answer.
Why Choose Archimedia for Making Tax Digital?
Making Tax Digital can be straightforward, but a lot of people end up overcomplicating it or leaving it too late.
We see it all the time. Businesses using spreadsheets that don’t quite meet the rules, software that isn’t set up properly, or submissions being rushed just to meet deadlines.
At Archimedia Accounts, we make sure everything is set up properly from the start. The right software, connected correctly, with a process that actually works day to day.
We’ve been doing this for over 30 years for businesses across Nottingham, so we know what works and what doesn’t.
If you’re unsure where you stand with MTD, we’ll give you a clear answer and sort it with you. No overcomplicating it.