Making Tax Digital — What You Need to Know
Making Tax Digital (MTD) is HMRC's initiative to modernise the UK tax system. It requires businesses and self-employed individuals to keep digital records and submit tax information to HMRC using MTD-compatible software. At Gro Profit First Accountants, we handle the entire MTD process for you — setup, quarterly submissions, and year-end filing.
MTD for Income Tax — Key Dates
MTD for Income Tax Self Assessment starts in April 2026 for self-employed individuals and landlords with income over £50,000. The threshold drops to £30,000 from April 2027, and to £20,000 from April 2028. If you fall into any of these categories, you'll need to submit quarterly updates to HMRC through compatible software, in addition to your annual self assessment.
What We Handle
We manage your complete MTD compliance: Xero setup and configuration (included free), connecting bank feeds and payment platforms, quarterly income and expense submissions to HMRC, end-of-period statements, and final year-end declarations. You won't need to learn the software or worry about deadlines — we take care of everything.
MTD for VAT
MTD for VAT has been mandatory since April 2022 for all VAT-registered businesses. If you're VAT registered, you're already required to keep digital records and file VAT returns through MTD-compatible software. We handle VAT returns as part of our standard packages — no additional charge.
Why Use an Accountant for MTD?
While you're not legally required to use an accountant for MTD, the additional quarterly reporting obligations on top of your annual self assessment make it significantly more time-consuming to manage alone. Most sole traders and landlords find that having Gro handle their MTD submissions saves hours every quarter and avoids the risk of late filing penalties.