Take Control of Your Taxes: How Making Tax Digital Simplifies Your Finances
The digitalisation of tax is now a reality, and it’s more than just a regulatory change. Making Tax Digital (MTD) is revolutionising how individuals, landlords, and businesses manage their tax affairs. Here’s how this pivotal shift gives you clarity, control, and compliance, especially with the expert guidance of Chandler & Partners.
What Is Making Tax Digital?
Making Tax Digital is a UK government initiative that modernises the tax system by requiring digital record‑keeping and submissions through HMRC‑approved software Initially introduced for VAT from April 2019, it became mandatory for all VAT-registered businesses by April 2022 The next phase, Making Tax Digital for Income Tax Self Assessment (ITSA), is set to begin in April 2026, targeting self-employed individuals and landlords with income over £50,000.
Why Was Making Tax Digital Introduced?
Reduce Errors
Moving away from manual entries to linked software dramatically cuts down on mistakes. Digital tools automate calculations, leading to more accurate records and fewer corrections, a core benefit emphasised by Chandler & Partners.
Real-Time Financial Insights
With quarterly updates, rather than once-a-year filing, you gain visibility into your tax obligations throughout the year. This proactive insight supports better budgeting and planning.
Simplified Compliance
Once your system is set up, making tax digital for VAT becomes streamlined, submitting returns is easier, deadlines are clear, and compliance is smoother. Chandler & Partners offers comprehensive support to make your transition as efficient as possible.
Who Needs to Comply and When?
Making Tax Digital is being introduced in phases, and depending on your business type and income level, you may already be required to comply, or will be soon.
If you're VAT-registered, Making Tax Digital for VAT is already mandatory. Since April 2022, all VAT-registered businesses, regardless of turnover, must keep digital records and submit VAT returns using MTD-compliant software.
The next major rollout is Making Tax Digital for Income Tax Self Assessment (ITSA). From April 2026, it will become mandatory for self-employed individuals and landlords with annual business or property income over £50,000 to keep digital records and send quarterly updates to HMRC using approved software. Then, from April 2027, the threshold is expected to extend to those earning over £30,000 per year.
While certain exemptions do apply, such as for individuals with a disability, or those who cannot reasonably access the internet, the vast majority of businesses and landlords will need to follow the new rules.
If you’re not yet required to comply, this is the ideal time to prepare. Making the switch to digital systems early gives you more time to adapt, reduces future stress, and puts you ahead of HMRC’s timeline.
What Does MTD Mean for You?
Making Tax Digital for VAT
If you’re VAT-registered:
- You must use MTD VAT software to store digital invoices and receipts, then submit returns directly to HMRC.
- Chandler & Partners helps you select and set up compliant software, be it Xero, Sage, or QuickBooks.
Making Tax Digital for Income Tax
From April 2026, quarterly submissions of income and expenses are required, capped with an end‑of‑period statement. Chandler & Partners guides you through:
- Recording entries digitally
- Linking them to MTD software
- Submitting updates accurately and on time
Why Work with Chandler & Partners?
Your MTD transition doesn’t have to be stressful. Chandler & Partners provide tailored digital services tax guidance, including:
- Software Selection & Setup: We evaluate your needs and implement the best MTD-compatible tools.
- Data Migration & Record-Keeping: Cleanly transfer previous records and establish reliable digital processes.
- Quarterly Submissions: Leave the compliance to us, no more chasing deadlines or worrying about errors.
- Ongoing Compliance & Updates: We monitor HMRC changes so you don’t have to, keeping your systems current and compliant
Benefits of Digitalising Your Tax Process
- Fewer Mistakes: Automated, linked systems reduce human error
- Time Savings: Less paperwork, more time for what matters
- Full Visibility: Quarterly insights help you stay ahead
- Stress-Free Compliance: Expert support means you meet obligations confidently
Get Expert Help with Making Tax Digital - Contact Chandler & Partners
Whether you're VAT-registered or preparing for upcoming income tax changes, the sooner you switch to digital, the smoother your transition will be. At Chandler & Partners, we provide personalised MTD support to ensure your business stays compliant and benefits fully from tax digitalisation.
From selecting the right MTD VAT software to managing quarterly submissions and setting up digital record-keeping systems, we’re here to make your MTD journey seamless and stress-free.