Making Tax Digital is a UK government plan led by HM Revenue and Customs to move tax reporting online. The goal is to make the system more accurate, efficient, and easier for businesses to manage.
Instead of paper records or manual submissions, businesses now keep digital records and send updates using approved software. This reduces errors and helps you stay on top of your finances in real time.
The changes started with VAT and are now expanding to income tax for qualifying self-employed individuals.
Book a Discovery CallThe move to digital tax affects how many businesses and individuals manage finances day to day. It changes how records are kept, how returns are submitted, and how updates may be required.
For many, this can feel confusing at first. That is where working with an experienced accounting team makes a real difference.
At Henderson & Co Accountants, we simplify the process. We use modern tools and clear communication to help you stay compliant without stress.
Making Tax Digital currently applies to VAT-registered businesses, including:
Most VAT-registered businesses must now:
These rules apply based on VAT registration, not business structure.
We work with businesses across Belfast, York, and Kilkeel to move their processes online and keep everything running smoothly.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is also being introduced for qualifying self-employed individuals and landlords.
HMRC THRESHOLDS AND DATES:
According to current HMRC guidance:
• Individuals with qualifying income over £50,000 must comply from 6 April 2026
• Individuals with qualifying income over £30,000 must comply from 6 April 2027
• Individuals with qualifying income over £20,000 must comply from 6 April 2028
Under these rules, affected individuals may need to:
As these rules develop, it is important to stay informed and prepare early.
We help clients understand what applies to them and get the right systems in place.
Many business owners still confuse the two systems, but they apply to different types of tax.
MTD for VAT already applies to VAT registered businesses. It focuses on digital VAT record keeping and submitting VAT returns through compatible software.
MTD for Income Tax is a separate system being introduced from April 2026 onwards for qualifying sole traders and landlords based on HMRC income thresholds.
While both systems require digital records and approved software, the reporting requirements and timelines are different.
Understanding the rules is key to staying compliant with making tax digital.
You must store financial records in a digital format. This includes sales, purchases, and VAT details.
You need to use HMRC-compatible software that connects directly to HMRC systems. Spreadsheets alone are not enough unless linked to approved tools.
Depending on which MTD rules apply to you, digital submissions may be required throughout the year.
Digital systems help reduce errors, but records must still be correct and up to date.
We guide you through each step so you always know what is required.
At Henderson & Co Accountants, we provide a full range of services designed to support your move to digital tax.
We set up your systems and software so you are fully compliant from day one. We also train you on how to use the tools if needed.
We manage your VAT returns using digital systems. This includes both standard and cloud-based submissions.
Using cloud software, we give you real-time access to your financial data. This makes tracking VAT simple and clear.
Our cloud bookkeeping keeps your records organised and updated. You can access your finances at any time, from anywhere.
Managing staff comes with added responsibilities. We take care of payroll and pension duties so you can focus on running your business.
Our services include:
We handle all calculations and submissions, keeping everything accurate and up to date.
If you are self-employed or work in construction, digital tax rules may also apply to you.
We support with:
We make the process simple and keep your records aligned with digital requirements.
Starting a business can feel overwhelming, especially when thinking about tax from day one.
We help with:
From the start, we help build sound financial systems that support compliance and future growth.
Understanding your finances is key to business growth. Digital systems make it easier to track performance and plan ahead.
We provide:
With clear reports, you can make better decisions and stay in control of your business.
Year-end reporting is still a key part of running a business.
We take care of:
By using digital systems, we keep your records organised throughout the year. This makes the year-end smooth and stress-free.
Online businesses face unique challenges when it comes to tax.
We support ecommerce businesses with:
Our team understands how e-commerce works and helps you stay compliant with applicable tax rules.
Moving to digital tax systems offers many advantages for your business.
Digital records reduce the risk of mistakes in your accounts.
You can see your financial position at any time.
Tasks like invoicing and reporting become quicker.
All your financial data is stored in one place.
With our support, you get the full benefit of these improvements without the stress of managing them alone.
We are a local accounting team with offices in Belfast, York, and Kilkeel. Since 2014, we have supported businesses with modern, reliable financial services.
When you work with us, you get:
We build strong relationships with our clients and take time to understand your business. This helps us provide advice that fits your goals.
With the upcoming HMRC deadlines approaching, now is the best time to get MTD ready and avoid last-minute stress.
Whether you need help choosing software, setting up digital systems, or understanding how the rules apply to your business, our team is here to help.