HM Revenue and Customs’s Making Tax Digital (MTD) initiative is set to transform tax filing into a fully digital process in what is hailed as the biggest shakeup for decades.
With the first major compliance date in April 2026 looming, now is the perfect time to run through these five essential checks:
1. Digitise All Your Records
It’s time to retire paper ledgers and disparate spreadsheets.
Collect every invoice, receipt and ledger entry into one secure online hub so that nothing slips through the net when you come to file.
2. Confirm Software Compatibility
MTD requires approved digital software for both record‑keeping and submissions.
While there are specialist packages available, you don’t have to start from scratch.
You can use Excel spreadsheets, provided they can link with HMRC’s systems.
3. Streamline Your Workflows
Every part of your operation, including sales, purchasing, payroll and expenses, must now channel data into your MTD system.
Fragmented processes increase the risk of missing transactions, so map out how information flows and plug any gaps as soon as you spot them.
4. Train Your Team and Assign Responsibility
Even the best tools are not going to be helpful unless your people know how to use them.
You need to deliver hands-on training, clarify who’s responsible for each data‑entry task, and schedule regular refreshers to keep everyone up to date with any changes to HMRC’s requirements and guidance.
5. Trial the Reporting Process
Quarterly filings are a significant departure from annual returns.
Now is the time to run mock submissions to uncover and resolve any glitches.
This will help you relax when the real deadline arrives as you can file without fear of penalties.
MTD is an exciting change that should streamline the tax filing process.
We are on hand to help you with the change to MTD so that you can stay compliant with all future filings.
Make the most of the time you have left to prepare for MTD. Speak to our team today!