Making Tax Digital (MTD) gives businesses a clearer, real-time view of their finances before their end-of-year accounts are prepared.
Making Tax Digital (MTD) is a UK government initiative designed to help businesses monitor their finances throughout the year so they can identify improvements before their end-of-year accounts are calculated and it’s too late to do anything about it.
MTD requires your business to do digital record-keeping, as well as online tax filing and payment to reduce tax errors.
Several online software packages exist to manage this information, which are also registered as compliant with the MTD system.
Making Tax Digital requires your business to conduct digital record-keeping, as well as online tax filing and payment to reduce tax errors. It came into effect for VAT in April 2019 and is now being phased in for Income Tax from April 2026, beginning with sole traders and landlords earning over £50,000 and gradually extending to lower income thresholds. The process is all about using compatible software to manage your tax affairs.
MAKING TAX DIGITAL For Income Tax
The Government is phasing in Making Tax Digital for Income Tax (MTD for IT) from April 2026, starting with sole traders and landlords whose total income exceeds £50,000. Those earning over £30,000 will follow in April 2027, and the threshold is expected to reduce further to £20,000 by 2028.
If you’re affected, this means a significant change. Instead of submitting a single annual tax return, you’ll be required to keep digital records and submit updates to HMRC every quarter, followed by an end-of-year declaration. Submissions will be due by the 7th of the month following each quarter end, similar to VAT deadlines. HMRC will allow quarters to align either with the tax year or calendar months.
To comply, you’ll need MTD-compatible software to record your income and expenses and make regular digital submissions. This will be a big adjustment for many, particularly those used to filing once a year, so it’s important to prepare early.
At Venton, we’re here to make this transition as smooth as possible. We offer dedicated support, digital software solutions, and a fully managed service to ensure you’re always compliant and up to date. By working with us, you can avoid penalties, reduce admin, and focus on what you do best – running your business.
Does Making Tax Digital for IT Apply to You?
We’ve put together a simple flow diagram below to help you determine if and when you need to make the switch to MTD.
How Venton Can Support You
We know everyone’s circumstances are different, so we’ve created three flexible options depending on how much support you’d like.
OPTION 1
MTD REVIEW PACKAGE
You keep your digital records and submit quarterly updates. We:
- Review your figures
- Submit your Final Declaration to HMRC
Ideal if you’re comfortable managing your own records but want professional oversight.
OPTION 2
MTD SUPPORT PACKAGE
You prepare your bookkeeping. We:
- Review your records
- Submit your quarterly updates
- Submit your Final Declaration
A good middle ground for clients
who want support along the way.
OPTION 3
MTD FULL SERVICE PACKAGE
We take care of everything. Including:
- Bookkeeping
- Quarterly submissions
- Final Declaration
Designed for those who want the process fully managed.
Not sure which level of support you need?
Get in touch and we can talk through your options and help you choose the right package.
MAKING TAX DIGITAL FOR VAT
If you are a VAT-registered business with a turnover of £90k or above (the current threshold), your business is required to join the Government’s ‘Making Tax Digital’ (MTD) scheme. Which now means you now need to keep digital records and send digital VAT returns.
From April 2022, the rules surrounding VAT-registered businesses changed, extending their regulations to all VAT-registered businesses in the UK, so it is now more important than ever to make sure that your business is following the government guidelines and setting yourself up for success as your business grows and develops.
If your business currently has a taxable turnover below the £90k threshold you can still use this service voluntarily, HMRC actively encourages this protocol, as the software helps you gain a better understanding of how your business is currently performing.
HOW WE CAN HELP WITH YOUR BUSINESS’S VAT
Our experts can complete various tasks to ensure your business is compliant with the latest rules and regulations, such as;
- VAT Registration
- VAT Return Preparation
- Submissions of returns to HMRC
- Confirming the correct VAT liability balance due to HMRC
- Setup of Direct Debit
- New Build VAT Reclaims
- Making Tax Digital
With a wealth of experience within:
- Cash Accounting Scheme
- Flat Rate Scheme
- Partial Exemption
SET UP FOR MAKING TAX DIGITAL WITH VENTON
At Venton, we’ve invested in specific training with specialist software such as SAGE, Xero and Quickbooks to address this need and make sure your business is truly compliant with MTD standards. Whether you need help with setting up your account, training on the new software platforms or total account management, our team can make MTD work for your business.
NEED HELP WITH MAKING YOUR VAT COMPLIANT WITH UK REGULATIONS?
Whether you are a one-person team or a large business, we can help to keep your books in good order in compliance with the latest government rules and regulations, especially when it comes to making your tax digital.
If you’d like to find out more about our Accountancy Services, we’d love to hear from you – contact us, to kickstart your accountancy journey with Venton today.
Get In Touch
Call us today to discuss your Accounting or Conference facility needs. We would be delighted to hear from you.