Making Tax Digital UK —
MTD Compliance Without the Stress
Full Making Tax Digital compliance for UK businesses — MTD for VAT, MTD for Income Tax (ITSA) preparation, approved software setup and quarterly submissions. Stay ahead of every HMRC MTD mandate with Britvex handling everything.
Making Tax Digital — What You Need to Know
Making Tax Digital is HMRC’s programme to move the UK tax system to a fully digital basis. It started with MTD for VAT in 2019 and is being extended to Income Tax for sole traders and landlords from 2026 — with more taxes to follow.
MTD for VAT — mandatory for all VAT-registered businesses since April 2019. Requires digital record keeping using HMRC-approved software and VAT returns submitted directly through the software via HMRC’s API. Spreadsheet users must use bridging software.
MTD for Income Tax (ITSA) — from April 2026 for sole traders and landlords with qualifying income above £50,000; from April 2027 above £30,000. Requires quarterly income and expenses submissions to HMRC throughout the year, replacing the annual Self Assessment return.
Non-compliance with MTD carries HMRC penalties — late submission penalties under the new points-based system apply from one day late. We ensure every client is fully MTD compliant for every applicable tax from the first day they need to be.
✅ What’s Included
- ✓ MTD VAT registration & setup
- ✓ HMRC-approved software setup
- ✓ Digital record keeping implementation
- ✓ Digital links compliance
- ✓ Quarterly VAT return submission
- ✓ Bridging software (if needed)
- ✓ MTD ITSA preparation & planning
- ✓ Quarterly ITSA updates (from 2026)
- ✓ HMRC correspondence handled
- ✓ Exemption applications where applicable
MTD Rollout — Key Dates
Making Tax Digital — Common Questions
If your VAT taxable turnover exceeds the £90,000 registration threshold, MTD for VAT is mandatory — you must keep digital records and submit VAT returns using HMRC-approved software. If you voluntarily registered for VAT below the threshold, MTD still applies. We handle full MTD VAT compliance for all our VAT-registered clients.
MTD for Income Tax Self Assessment (MTD ITSA) requires sole traders and landlords to submit quarterly income and expense updates to HMRC using approved software, replacing the annual Self Assessment return. It starts in April 2026 for those with qualifying income above £50,000, and April 2027 for those above £30,000. We’re already preparing all eligible clients for this change.
You can use spreadsheets for your bookkeeping, but you must use bridging software to create a digital link between your spreadsheet and HMRC’s API for VAT submissions. We set up and manage bridging software for clients who prefer to maintain spreadsheet records — ensuring full MTD compliance without changing your workflow.
We work with all HMRC-approved MTD software including Xero, QuickBooks, Sage, FreeAgent and BrightPay. We also use bridging software including Absolute VAT Filer and Xero’s MTD module for clients who need it. We’ll recommend and set up the best solution for your specific situation at no extra charge.
HMRC’s new points-based penalty system applies to MTD non-compliance — each late submission earns a penalty point, and once a threshold is reached, a £200 financial penalty is charged. Points expire after 24 months of compliance. Additionally, HMRC can issue penalties for failure to keep digital records. We ensure zero MTD penalty points for all our clients.
MTD Compliant — From Day One
Book a free consultation and we’ll review your current MTD position, set up any required software and ensure you’re fully compliant — with zero risk of HMRC penalties.
Which Businesses Need This Service?
All VAT-Registered Businesses
MTD for VAT is mandatory for all UK VAT-registered businesses since April 2019. If you’re VAT registered and not using approved MTD software, you are already non-compliant and at risk of HMRC penalties.
Sole Traders & Landlords (from 2026)
MTD for Income Tax (ITSA) begins April 2026 for sole traders and landlords earning above £50,000. Preparation now means a smooth transition — leaving it until 2026 risks missed deadlines and rushed compliance.
New Business Owners
Setting up your bookkeeping on an MTD-compliant platform from day one is far simpler than migrating later. We set up new businesses on approved MTD software as part of our standard onboarding.
Spreadsheet Users Approaching VAT Threshold
Businesses approaching the £90,000 VAT threshold need to plan their MTD setup before registration — not after. We advise on the most practical route to MTD compliance for businesses at or near the threshold.
4 Mistakes That Cost UK Businesses Thousands
The old HMRC VAT online service (non-MTD) was closed to most businesses in April 2022. Filing via the old portal is non-compliant and subject to penalties. Every VAT return must now be submitted via MTD-compatible software with a digital link to HMRC’s systems.
Copy-pasting figures between spreadsheets and MTD software is not a ‘digital link’ — it is a manual intervention that breaks the MTD digital link requirement. HMRC requires an unbroken digital chain from your source records to the VAT return submission. This means automated data transfer or HMRC-approved bridging software.
MTD ITSA requires not just a software change but a fundamental shift in how you record income and expenses — from annual to quarterly. Businesses that wait until April 2026 will be making this transition under pressure. We recommend getting MTD ITSA-ready at least 12 months before your start date.
MTD requires digital records of every VAT transaction — not just the quarterly totals. Each individual sale and purchase must be recorded digitally with the correct VAT treatment. Keeping only summary figures does not meet HMRC’s MTD digital record keeping requirements.
MTD Compliance — Fixed Fee, No Surprises
All Britvex fees are fixed and agreed upfront before we start. No hourly rates, no per-transaction charges, no surprise invoices. The fee you’re quoted is the fee you pay — every month.
Our pricing is based on transaction volume, business complexity and the services included. Book a free 30-minute consultation and we’ll provide an exact fixed-fee quote for your specific business — typically within 24 hours. Most clients tell us our fees are lower than their previous accountant while providing significantly more service.
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