What is Making Tax Digital (MTD)?

A UK government initiative requiring digital record-keeping and submissions via compatible software (e.g., Xero) for VAT and Income Tax (Self Assessment).

Who must comply and when?

All VAT-registered businesses must use MTD for VAT. From 6 April 2026, sole traders and landlords with qualifying income over £50,000; from 6 April 2027, those over £30,000.

Do I have to use Xero?

You must use compatible software. We recommend Xero for automation, controls, audit trail and direct HMRC submissions.

What are quarterly updates and final declaration?

Quarterly updates are periodic submissions of your digital records. At year-end you submit an End of Period Statement (EOPS) and a Final Declaration replacing the current Self Assessment submission.

Making Tax Digital (MTD)

Get MTD-ready with Xero. Digital records, compliant filings, clear insights.

Q: Can I keep spreadsheets?

Only if they are digitally linked to compatible software. A full Xero workflow reduces error risk and admin.

Q: Are there exemptions?

Some taxpayers may qualify for digital exclusion or specific HMRC deferrals. We can assess and apply if eligible.

ACCA-qualified, Xero-certified accountants delivering HMRC-compliant VAT submissions and MTD for Income Tax setup for UK sole traders, landlords and limited companies.

Book a free MTD consultation Visit the Knowledge Hub

Oxfordshire-headquartered, serving clients UK-wide. Fast onboarding, clear guidance and friendly support.

Why businesses choose our Xero-first MTD approach

Reduce errors, automate admin and stay compliant with clear workflows, reviews and deadline tracking.

Compliance built-in

Digital links, audit trail and HMRC-authorised submissions.

Automation

Bank feeds, rules and receipt capture streamline bookkeeping.

Real-time insight

Live P&L, cashflow and tax estimates to avoid surprises.

Human support

ACCA-qualified team on hand for reviews and queries.

MTD deadlines at a glance

Area	Who	From	What’s required
VAT	All VAT-registered businesses	In force	Digital records + MTD VAT returns through compatible software (Xero)
Income Tax (ITSA)	Sole traders & landlords with qualifying income > £50,000	6 Apr 2026	Digital records, quarterly updates, End of Period Statement, Final Declaration
Income Tax (ITSA)	Sole traders & landlords with qualifying income > £30,000	6 Apr 2027	As above

“Qualifying income” is generally gross income from self-employment and property combined.

Our MTD setup process

Discovery: map data flows and deadlines
Xero setup and HMRC agent authorisations
Digital record migration and tidy-up
Bank feeds, bank rules, receipt capture
Quarterly updates / VAT returns scheduling
Training, reviews and year-end support

What you get

MTD-compliant digital records in Xero
Automated submissions and deadline tracking
Error reduction and robust audit trail
Real-time reporting and tax estimates
Ongoing support from our ACCA-qualified team

Next steps

Book a discovery call
Provide HMRC authorisation codes
Share historic records to migrate

Start your MTD setup Open Knowledge Hub

Official HMRC / GOV.UK MTD resources

Useful links to official guidance and sign-up pages:

We guide clients through sign-up, software setup and ongoing compliance.

MTD FAQs

Do I have to move to Xero to be compliant?

You must use compatible software with digital links. We recommend a full Xero workflow for automation, controls and direct HMRC submissions.

What counts as “qualifying income” for MTD ITSA?

It is usually your total gross income from self-employment and property combined. HMRC determines whether you’re in scope based on filed returns.

How often are quarterly updates due?

Once in scope, you submit updates for each quarter. We schedule and file these via Xero so you meet statutory deadlines without last-minute stress.

What is the End of Period Statement (EOPS) and Final Declaration?

EOPS finalises your business records for the year. The Final Declaration replaces today’s Self Assessment submission to confirm all income and reliefs.

Can I keep spreadsheets?

Only if digitally linked to compatible software. Manual copy-and-paste breaks the “digital links” requirement. We can migrate you fully to Xero.

Are there exemptions or deferrals?

Some taxpayers may be digitally excluded (e.g., due to age, disability or remoteness) or fall under HMRC deferrals. We assess eligibility and apply on your behalf.

What happens if I don’t comply?

Non-compliance can trigger penalties and interest. Our approach builds compliance into your day-to-day bookkeeping so deadlines and rules are met.

Can you act as my agent with HMRC?

Yes. We obtain agent authorisations to submit VAT returns, quarterly updates and year-end statements on your behalf, with your approval.

I have multiple trades or properties, how is that handled?

Each business/property income source is maintained digitally and reported correctly. We configure Xero tracking and map submissions to HMRC requirements.

How long must I keep digital records?

Generally at least 5 years after the 31 January submission deadline for the relevant tax year. We set up secure, searchable digital storage.

Can you help me switch from my current accountant?

Yes. We manage a smooth handover, request professional clearance and bring your records into Xero with minimal disruption.

Call: 01865 819994

WhatsApp: 07555 009461

ACCA-qualified | Xero-certified | Oxfordshire-headquartered | Serving clients UK-wide

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