From April 2026, sole traders and landlords earning over £50,000 will be legally required to comply with Making Tax Digital for Income Tax (MTD for IT).
This means using compatible software to submit quarterly updates to HM Revenue & Customs, and relying on spreadsheets simply won’t cut it anymore.
Getting set up with cloud accounting now will save you a lot of hassle later.
Rather than handling the software and reporting changes yourself, outsource the process to us and stay focused on running your business.
Why forward-thinking businesses are getting ahead
Those acting early are avoiding the last-minute rush, getting to grips with new systems at their own pace, and discovering the wider benefits of digital record-keeping.
This is just the start. In 2027, the threshold will fall to £30,000. In 2028, it drops again to £20,000.
The clock is ticking, but the good news is that getting set up does not need to be stressful.
What Making Tax Digital will require
If you will be affected by MTD for IT, you will need to:
- Send quarterly updates to HMRC (due 7 August, 7 November, 7 February and 7 May)
- Submit a final declaration after the end of the tax year
- Use MTD-compatible software that links directly with HMRC
This is a big change in how you manage and report your tax, but with the right tools and support, it can also be a real opportunity.
We can take care of all of this on your behalf, ensuring deadlines are met and software is working as it should.
Cloud accounting – Saving you time, money and stress
We will handle the transition to cloud accounting for you, setting up the right tools and managing the process from start to finish.
We specialise in Xero, a simple, powerful system that gives you and your accountant real-time access to your financial data. Whether you are on a phone, tablet or computer, you will be able to:
- Access up-to-date business information whenever you need it
- Keep your records in one secure place with automatic backups
- Save time on manual processes and data entry
- Share access with us so we can support you every step of the way
Prefer another system? No problem. Our tax specialists also work with a wide range of other cloud platforms, and we’ll help you choose a solution that suits your needs.
This is not something to leave until the last minute
MTD is not optional. If you do nothing, you will face disruption, additional costs, and the risk of penalties for non-compliance.
We will take the time to understand your business, explain your responsibilities under MTD, and set you up with a system that keeps you compliant and in control.
Speak to the team at M J Bushell today to start your MTD journey with confidence.