MTD ready – Recognised by HMRC

What is Making Tax Digital?

 

Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for businesses to get their tax right first time and keep on top of their tax affairs.

To help make the UK’s tax system more efficient and effective, Making Tax Digital introduces digital record keeping requirements and requires the use of software that’s compatible with the Making Tax Digital platform.

Two business people discussing work

This new digital experience is designed to help businesses, sole traders, and landlords minimise the number of avoidable errors they currently make, and make preparing and filing returns easier, and less stressful, for all parties involved.

Making Tax Digital for VAT is part of HMRC’s wider Making Tax Digital programme, and was the first tax under MTD to be rolled out. Making Tax Digital for Income Tax extends these digital requirements to self-employed individuals and landlords, introducing quarterly updates and digital record keeping for income tax alongside the existing VAT requirements.
MTD for VAT came into effect from April 2019, with most businesses required to apply the rules for their first VAT period starting on or after 1 April 2019.

From April 2026, MTD for Income Tax comes into effect for self-employed individuals and landlords with qualifying income over £50,000. These taxpayers will need to use MTD-compatible software to maintain digital records, submit quarterly updates to HMRC, and file an end-of-year declaration.
Businesses that are VAT registered with a taxable turnover over £85,000 must comply with Making Tax Digital for VAT, subject to very limited exceptions. If you had to file a VAT return before MTD for VAT, the chances are high you'll have to comply with these new rules.

Self-employed sole traders and landlords with income above the £50,000 threshold will need to comply with Making Tax Digital for Income Tax from April 2026. This includes anyone currently completing Self Assessment tax returns for self-employment or property income.

Even if you're not required to comply with the Making Tax Digital rules, there's nothing to stop you from voluntarily following the regime to benefit from improved tax management.
Business owner and colleague looking at reports and charts on paper

Get the Right Making Tax Digital Software

 

Around 98% of VAT returns are already submitted digitally, but under Making Tax Digital there are new requirements that businesses and their accountants / bookkeepers should be aware of.

One of the most important new requirements is that VAT returns and income tax updates should be filed with HMRC using software that is compatible with the Making Tax Digital platform.

AccountsPortal has been recognised by HMRC as being Making Tax Digital compatible for both VAT and Income Tax, meaning filing MTD compliant VAT returns and income tax updates is a breeze.

Digital Record Keeping

 

Our software ensures your business complies with the digital record keeping requirement of MTD, meaning there’s no need to use other software to record your VAT and income tax figures.

Online Filing

 

Seamlessly file accurate VAT returns and income tax updates online to HMRC using the data held in AccountsPortal.

VAT Information At Your Fingertips

 

Keep on top of your VAT compliance. Use AccountsPortal to view submitted VAT returns, check what VAT you owe to HMRC, and view your payment history.

Income Tax Information At Your Fingertips

 

Keep on top of your income tax compliance. Use AccountsPortal to view submitted quarterly updates, track your tax position throughout the year, and manage your end-of-year declaration.

Use AccountsPortal for your Making Tax Digital needs

 

Whether you’re a bookkeeper, accountant, or small business owner, AccountsPortal’s Making Tax Digital offering can help you get the most out of your VAT and income tax compliance.

AccountsPortal’s software is integrated with the Making Tax Digital portal, meaning it’s easier than ever to paint a clear picture of your in-year tax position and to get your tax right first time. The improved process is more efficient and reliable - meaning you can spend less time worrying about tax, and more time worrying about your business.
For self-employed sole traders, Making Tax Digital for Income Tax means staying on top of your finances has never been easier. AccountsPortal helps you maintain digital records, submit quarterly updates, and track your tax liability in real-time. No more surprises at the end of the year - you'll always know where you stand with HMRC.
As Making Tax Digital continues to expand, there are plenty of businesses that are counting on their tax advisers to guide them through the new regime, and make sure they remain compliant with the new rules.

AccountsPortal knows how important it is to keep on top of a client’s tax compliance. Our software allows you to interact with HMRC digitally and at a time that suits you.

It’s easy to get an increasingly personalised picture of your clients' tax affairs, with prompts, advice and support available through webchat and secure messaging.

By using digital software like AccountsPortal, information can be sent and received directly, with nudges and prompts built-in that help your clients get their tax right first time.
Accountant and small business owner looking at reports on iPad

HMRC Making Tax Digital Software

 

Transitioning to Making Tax Digital for VAT and Income Tax doesn’t need to be a chore. Once you’re up and running, there are plenty of benefits to digital record keeping and online filing.

Efficiency

 

HMRC is helping accountants and small business owners save precious time by speeding up the VAT and income tax submission process and automating it as much as possible.

Better Use of Information

 

You should not have to give HMRC information that it already has or can obtain elsewhere. You will be able to use AccountsPortal to check the information that HMRC holds about your business at any time to ensure that it is complete and correct.

Reliability

 

This streamlined digital experience will integrate tax into day-to-day business record keeping, giving businesses confidence that they have got their tax right, while having an accurate view of their tax position in-year.

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