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Making Tax Digital (MTD) Services London

Expert Making Tax Digital (MTD) compliance and submission services. We help businesses comply with HMRC's Making Tax Digital requirements for VAT, income tax, and corporation tax.

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Making Tax Digital - Acumon

Making Tax Digital (MTD) Services

Expert Making Tax Digital (MTD) compliance and submission services. HMRC's Making Tax Digital initiative requires businesses to keep digital records and submit tax returns using compatible software. We help businesses comply with MTD requirements for VAT, income tax, and corporation tax, ensuring seamless digital tax compliance.

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC's initiative to transform the UK tax system by requiring businesses to:

  • Keep digital records of their business transactions
  • Submit tax returns using MTD-compatible software
  • Maintain digital links between software and records
  • Submit returns directly from software to HMRC

MTD for VAT

MTD for VAT applies to VAT-registered businesses with taxable turnover above the VAT threshold (£85,000):

  • MTD VAT Registration: Registration for MTD for VAT with HMRC
  • MTD-Compliant VAT Returns: Preparation and submission of VAT returns using MTD-compatible software
  • Digital Record Keeping: Maintaining digital records in MTD-compatible software
  • MTD Software Setup: Setting up MTD-compatible software (Xero, Sage, QuickBooks, etc.)
  • MTD Compliance Reviews: Reviews to ensure ongoing MTD compliance

MTD for Income Tax

MTD for Income Tax (MTD for ITSA) will apply to self-employed individuals and landlords from April 2026:

  • MTD for ITSA Preparation: Preparing for MTD for Income Tax Self-Assessment
  • Digital Record Keeping: Setting up digital record keeping for income tax
  • MTD Software Selection: Choosing MTD-compatible software for income tax
  • MTD Quarterly Updates: Preparing and submitting quarterly updates to HMRC
  • MTD End of Period Statement: Preparing and submitting end of period statements

MTD for Corporation Tax

MTD for Corporation Tax is expected to be introduced in the future:

  • MTD Preparation: Preparing for future MTD for Corporation Tax requirements
  • Digital Record Keeping: Establishing digital record keeping systems
  • MTD Software Evaluation: Evaluating MTD-compatible software options

MTD-Compatible Software

We work with a range of MTD-compatible software platforms:

  • Xero: MTD-compliant cloud accounting software (we are Xero Gold Partners)
  • Sage: MTD-compliant Sage software including Sage 50, Sage 200, and Sage Business Cloud
  • QuickBooks: MTD-compliant QuickBooks Online and QuickBooks Desktop
  • Other MTD Software: Support for other HMRC-approved MTD-compatible software

Why Choose Acumon for Making Tax Digital?

  • Extensive experience in MTD compliance and submissions
  • Expert knowledge of MTD requirements and HMRC guidance
  • Support for all major MTD-compatible software platforms
  • Proactive approach to MTD compliance and preparation
  • Seamless integration with our bookkeeping and tax services
  • Ongoing support and advice on MTD matters and changes

Integration with Other Services

Our Making Tax Digital services integrate seamlessly with our other services:

How to Comply with Making Tax Digital

Follow these steps to ensure your business meets HMRC's Making Tax Digital requirements for VAT, income tax, and corporation tax.

  1. 1
    Determine your MTD obligations
    Check which MTD requirements apply to your business. VAT-registered businesses with taxable turnover above £85,000 must comply with MTD for VAT. Self-employed businesses and landlords with annual income above £50,000 must comply with MTD for Income Tax from April 2026. Corporation tax MTD is being phased in from 2026. We can help you understand your specific obligations.
  2. 2
    Choose MTD-compatible software
    Select HMRC-approved MTD-compatible software such as Xero, Sage, QuickBooks, or other approved accounting software. The software must be able to keep digital records, submit VAT returns directly to HMRC, and maintain digital links between records. We're Xero Gold Partners and can help you choose and set up the right software for your business.
  3. 3
    Set up digital record keeping
    Establish digital record keeping systems that meet MTD requirements. This includes maintaining digital records of all business transactions, ensuring digital links between records (no manual data entry between systems), and keeping records in the approved format. We can help set up your systems to ensure full compliance.
  4. 4
    Register for MTD with HMRC
    Register your business for Making Tax Digital through your HMRC online account. You'll need to authorise your MTD-compatible software to submit returns on your behalf. The registration process varies depending on whether you're registering for MTD for VAT, Income Tax, or Corporation Tax. We can guide you through the registration process.
  5. 5
    Submit returns using MTD-compatible software
    Submit your VAT returns, income tax updates, or corporation tax returns directly from your MTD-compatible software to HMRC. Returns must be submitted digitally - paper returns are no longer accepted for MTD obligations. We can handle submissions on your behalf or train your team to submit returns correctly.
  6. 6
    Maintain ongoing compliance
    Ensure ongoing compliance by keeping digital records up to date, submitting returns on time, maintaining digital links between systems, and staying informed about MTD changes and requirements. We provide ongoing support to ensure your business remains compliant with all MTD obligations.

Frequently Asked Questions

Making Tax Digital (MTD) is HMRC's initiative to digitise the UK tax system, requiring businesses to keep digital records and submit tax returns using approved software. MTD for VAT applies to VAT-registered businesses with taxable turnover above £85,000. MTD for Income Tax applies to self-employed businesses and landlords with annual income above £50,000 from April 2026. MTD for Corporation Tax is being phased in from 2026. The aim is to make tax administration more effective, efficient, and easier for taxpayers.

You must comply with MTD for VAT if you're VAT-registered with taxable turnover above £85,000. You must comply with MTD for Income Tax if you're self-employed or a landlord with annual income above £50,000 from April 2026. Some businesses may be exempt due to insolvency, religious objections, or other specific circumstances. We can help determine your MTD obligations and ensure you're compliant.

You need HMRC-approved MTD-compatible software such as Xero, Sage, QuickBooks, or other approved accounting software. The software must be able to keep digital records, submit returns directly to HMRC, and maintain digital links between records. We're Xero Gold Partners and can help you choose and set up the right software for your business needs.

Digital links are electronic connections between different parts of your digital records, ensuring data flows automatically without manual re-entry. For example, data from your bank feed should flow automatically into your accounting software, and data from your accounting software should flow automatically to your VAT return. Manual copying of data between systems is not allowed under MTD rules. We can help ensure your systems have proper digital links.

Non-compliance with MTD requirements can result in penalties from HMRC, including late filing penalties, late payment penalties, and penalties for not keeping digital records. Penalties are calculated based on points - you receive points for each late return, and when you reach a threshold, you receive a penalty. We can help ensure you remain compliant and avoid penalties.

Yes, we provide comprehensive MTD compliance services including MTD-compatible software setup, digital record keeping systems, MTD registration with HMRC, VAT return submissions, ongoing compliance support, and training for your team. As Xero Gold Partners, we're experts in MTD-compliant software and can ensure your business meets all MTD requirements.

Next steps

Get in touch with our Making Tax Digital team to discuss your MTD compliance requirements. Our experienced team will provide expert MTD services tailored to your business needs.

Contact Us for Making Tax Digital