You’ve probably heard about Making Tax Digital (MTD) — but do you know what it actually means for you?
In short, MTD is HMRC’s move towards a fully digital tax system. It changes how you keep your records and how information is sent to HMRC — not how much tax you pay.
What’s Changing?
Here are the fundamental principles of Making Tax Digital (MTD), from April 6 2026:
- Digital record-keeping
Taxpayers must keep their business records (income and expenses) in a digital format, using compatible software rather than paper records. - Use of MTD-compatible software
Records and submissions must be created and sent using approved software that can connect directly to HMRC systems. - Digital links
Data must flow between systems digitally, without manual copying or re-keying (with limited exceptions). This helps reduce errors.
The aim is to modernise the tax system, reduce mistakes, and help people keep better track of their finances throughout the year. When records are kept digitally, there’s less chance of missing income, duplicated expenses, or last-minute panic.
Whether you need help setting up digital records, choosing the right software, or just want reassurance that you’re doing things correctly, we’ve got you covered.
Get in touch today — we’re always happy to help.