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MTD: A Simple Guide

Updated: 2 days ago

At Fresh Accounts, we specialize in simplifying tax processes for our clients. One of the biggest changes in recent years is Making Tax Digital (MTD). But what exactly is MTD, and how does it affect you? Let’s break it down in simple terms.

What is Making Tax Digital (MTD)?

MTD is a UK government scheme to modernise tax reporting. Instead of filing paper returns or manual submissions once a year, businesses and individuals now report their tax details digitally using approved software.

This transition enables:

  • Fewer mistakes from manual entries

  • Real-time updates

  • Less paperwork

Who Needs to Follow MTD?

  • VAT-registered businesses (mandatory if turnover is over £90K)

  • Self-employed individuals and landlords (from April 2026 if the income is over £50K or from April 2027 if the income is over £30K)

How Does MTD Work?

  1. Use MTD-compatible software (such as Xero, QuickBooks, or Free Agent)

  2. Keep digital records instead of shoeboxes of receipts

  3. Submit quarterly updates

  4. Finalise your tax return at the end of the year

How Fresh Accounts Can Assist With MTD

Setting up and managing your MTD submissions

  • Ensuring you stay compliant with the HMRC rules

  • Recommending the best software for your business


To get in touch for MTD assistance, just get in touch and we will handle the rest:

Call us: 07769594013


What is MTD?

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