Making Tax Digital (MTD) Accountants in London
Making Tax Digital accountants in London helping sole traders, landlords and VAT-registered businesses move from manual records to a manageable digital tax process.
ATA helps you understand when MTD applies, organise compatible bookkeeping, prepare quarterly updates and keep your annual tax obligations connected.
How Our Making Tax Digital Accountants London Service Works
Making Tax Digital is more than installing accounting software. It involves keeping the appropriate records digitally and submitting information to HMRC through compatible software. ATA provides practical support with setup, record keeping, reconciliations and submissions.
MTD for Income Tax
Support for sole traders and landlords entering quarterly digital reporting, including income and expense records and the annual tax return.
MTD for VAT
Compatible digital records, VAT reconciliations and electronic VAT return submissions for VAT-registered businesses.
MTD Software & Bookkeeping
Practical help with a suitable workflow using compatible software, including QuickBooks, Xero or other appropriate solutions.
When Does Making Tax Digital for Income Tax Apply?
MTD for Income Tax became mandatory from April 2026 for the first group of qualifying self-employed individuals and landlords. The threshold is based on qualifying gross income, not net profit, and may combine self-employment and property income.
Over £50,000
From 6 April 2026, based generally on qualifying income reported for 2024/25.
Over £30,000
From 6 April 2027, based generally on qualifying income reported for 2025/26.
Over £20,000
From 6 April 2028, based generally on qualifying income reported for 2026/27.
MTD for Income Tax
Individuals within scope need to keep digital records and send quarterly updates of relevant income and expenses through compatible software. They still complete an annual tax return, including year-end adjustments and other applicable income information.
- Check qualifying income and start date
- Choose and configure compatible software
- Record business and property transactions
- Send quarterly updates
- Complete annual tax return and review tax due
MTD for VAT
All VAT-registered businesses are generally required to keep specified VAT records digitally and file VAT returns through compatible software, subject to applicable exemptions.
- Digital sales, purchases and VAT records
- Appropriate VAT codes and adjustments
- VAT control account reconciliation
- Compatible VAT return submission
- Review of software connections and digital links
What Changes Under MTD for Income Tax?
Quarterly updates introduce a regular reporting cycle. They do not replace the end-of-year tax return or bring forward the ordinary annual tax payment deadline.
Keep Records
Maintain relevant income and expenses digitally in compatible software.
Send Updates
Submit four quarterly updates per tax year for the relevant income sources.
Review the Year
Make appropriate adjustments and include other income, reliefs and allowances.
File & Pay
Submit your annual return and pay tax by the applicable deadline.
Making Tax Digital Support From Setup to Submission
Whether you manage your own day-to-day records or want ATA to handle ongoing bookkeeping, we can help establish a clear division of responsibilities and a practical workflow.
MTD Readiness Review
Assess the relevant income sources, registration position, existing records and the earliest likely MTD start date.
Digital Software Setup
Establish a suitable bookkeeping process and support software configuration, categories and reporting routines.
Ongoing Reporting
Keep records organised, review reconciliations and assist with relevant quarterly and annual filings.
Explore Connected Tax & Accounting Support
MTD sits across bookkeeping, VAT and personal tax. These ATA services help connect the digital reporting process to the underlying accounts.
Making Tax Digital FAQs
Does MTD for Income Tax apply to every sole trader?
No. It depends on whether you are within the relevant rules, including your qualifying income, start date and any exemption. The rollout is phased, beginning in April 2026 for qualifying income above £50,000.
Does the threshold refer to profit or turnover?
Generally, the Income Tax MTD threshold refers to qualifying gross income from self-employment and property, not taxable profit. Relevant income sources can be combined.
Does MTD replace the Self Assessment tax return?
No. Individuals within scope send quarterly updates and still complete an annual tax return. Tax payment arrangements also continue under the applicable rules.
Can I use Excel for MTD?
Depending on the requirement and software solution, spreadsheets may form part of a compliant workflow when supported by appropriate compatible or bridging software. A spreadsheet alone is not necessarily sufficient.
Do limited companies have to use MTD for Income Tax?
The current MTD for Income Tax rollout targets qualifying individuals with self-employment and/or property income, not limited companies’ Corporation Tax returns. VAT-registered limited companies are generally within MTD for VAT.
Can ATA manage my records and updates?
ATA can discuss a service covering software setup, bookkeeping, reconciliations and applicable submissions. The exact work and fees depend on the record volume, income sources and who maintains the day-to-day records.
Are there exemptions?
Yes, some individuals can qualify for exemptions, including certain cases of digital exclusion. Exemption rules should be checked against current HMRC guidance rather than assumed.
HMRC Making Tax Digital Resources
Useful official information to check eligibility, reporting requirements and compatible software.
- HMRC: Making Tax Digital for Income Tax ↗
- HMRC: When to start and quarterly deadlines ↗
- HMRC: VAT Notice 700/22 ↗
- HMRC: Compatible software for MTD for VAT ↗
Information reviewed for October 2026. Tax rules and administrative guidance can change; check the relevant HMRC publications for the current position.
Need Help With Making Tax Digital?
Tell us whether you are a sole trader, landlord or VAT-registered business, your approximate income and how you currently manage your records. We’ll help identify the appropriate next steps.