Navigating Making Tax Digital (MTD) Regulations

Making Tax Digital (MTD) – VAT & Income Tax Support

Simplify your tax responsibilities with expert help from RGR Payroll & Accounting Services, your local MTD support provider in Skipton.

What Is Making Tax Digital?

Making Tax Digital (MTD) is HMRC’s initiative to modernise the UK tax system. It requires businesses and individuals to keep digital records and submit tax information using MTD-compatible software, rather than traditional, once-a-year returns.

The goal? More accurate, efficient, and timely tax reporting for everyone — including sole traders, landlords, and VAT-registered businesses..

Who Is Affected by MTD?

MTD applies to a growing number of individuals and businesses. You’ll need to comply if you are:

VAT-registered
A sole trader or landlord earning over £50,000 (from April 2026)
Earning over £30,000 (from April 2027)

If you're in one of these groups, you must switch to digital bookkeeping and start submitting regular updates to HMRC through approved software.

MTD for VAT (Already Live)

If you're VAT-registered, you should already be following MTD rules. This includes:

Keeping digital VAT records
Filing VAT returns using MTD-compatible software

Not sure if you’re fully compliant? We can review your systems, check your software and help you stay on track, with minimal fuss.

MTD for Income Tax (Coming 2026)

From April 2026, MTD for Income Tax Self Assessment (MTD ITSA) will apply to:

Sole traders and landlords earning over £50,000
From April 2027, it will include those earning over £30,000.

Key changes under MTD ITSA:

Keep digital records of income and expenses
Send quarterly updates to HMRC
Submit a final declaration at year-end

We understand this sounds like a big shift, but with the right support and systems in place, it can actually simplify your bookkeeping and improve visibility over your finances.

Our MTD Compliance Service

We offer a complete MTD support package, including:

Help choosing the right MTD-compatible software
Set-up and training tailored to your business
Ongoing digital bookkeeping support
Timely, accurate submissions to HMRC
Friendly, expert guidance every step of the way

We don’t just plug you into a system and walk away. We work closely with you to choose what fits — whether that’s Xero, QuickBooks, FreeAgent, or something else entirely.

Get Ready Early – Stay Ahead of the Deadline

The earlier you prepare, the easier it will be. Many businesses are still unaware of MTD for Income Tax — but you don’t have to be one of them.

We’re already helping clients in Skipton and across the UK get ready for 2026. Let us set up your software, support your transition, and keep everything compliant moving forward.