Making Tax Digital Is Coming: Here’s What to Do Now.

Making Tax Digital (MTD) is already here for VAT and expanding to Income Tax Self Assessment (ITSA). Preparation now avoids future penalties and errors.

Key Dates

• MTD for VAT (already law): Since April 2019, all VAT-registered businesses must file digitally

• Quarterly VAT return deadlines: usually one month + 7 days after period end

• MTD for ITSA:

  • 6 April 2026: mandatory for sole traders/landlords with income over £50,000

  • 6 April 2027: threshold drops to £30,000

  • 6 April 2028: threshold drops to £20,000

• Income Tax quarterly updates: generally due one month after quarter ends (dates align with fiscal quarters: 6 Apr–5 Jul, 6 Jul–5 Oct, 6 Oct–5 Jan, 6 Jan–5 Apr).

Checklist for SMEs

• Understand your obligations: check whether MTD for VAT and ITSA applies (british-business-bank.co.uk)
• Get HMRC-approved software (gov.uk)
• Digitise bookkeeping before quarterly updates start
• Practice quarterly reporting (gov.uk)
• Review deadlines and integrate into your calendar

Useful Links:

• HMRC MTD guidance

• MTD ITSA toolkit

Need help navigating g the new digital tax world? The Honest Accounting team are ready and waiting. Contact Chay Mottley at Honest Accounting:
chay@honestaccounting.co.uk | 07983 187204

Honest Accounting. Simple. Efficient. Always Compliant.