Making Tax Digital

MTD Compliance Made Simple For Your Business

Making Tax Digital is changing the way businesses and individuals report income to HMRC. BC&A keeps you compliant, prepared and ahead of every deadline as the rollout progresses.

Overview

Mandatory digital tax reporting, handled by BC&A specialists.

Making Tax Digital is HMRC's programme to move tax record-keeping and reporting entirely onto digital platforms. It requires businesses, self-employed individuals and landlords to maintain digital records, use MTD-compatible software and submit quarterly updates to HMRC in place of a single annual return. The rollout is phased — those with qualifying income over £50,000 are brought in from April 2026, followed by those over £30,000 from April 2027.

BC&A manages the entire MTD process on your behalf. We ensure your records are kept in a compliant format, your software is correctly configured, your quarterly submissions are accurate and filed on time, and you are fully informed as the rules develop and thresholds change.

What MTD Requires

  • Digital record-keeping of all income & expenses
  • MTD-compatible accounting software
  • Quarterly submissions to HMRC
  • End of period statement (EOPS)
  • Final declaration replacing the annual return
  • Compliance from April 2026 (income over £50k)
  • Compliance from April 2027 (income over £30k)

You Must Decide Whether To Manage MTD Yourself Or Use An Accountant

Managing MTD yourself is possible if your finances are straightforward, you are confident using digital accounting tools and you can commit time every quarter to accurate submissions. However, errors in quarterly updates can trigger HMRC penalties, and the responsibility for compliance sits entirely with you. Using BC&A means your submissions are handled by specialists, your records are maintained correctly throughout the year and you are never caught out by a deadline or a rule change.

Preparing Early Makes The Transition Smoother And Avoids Risk

Even if MTD does not apply to you until 2027, starting early reduces the pressure significantly. Getting the right software in place, organizing your records digitally and understanding the quarterly process before it becomes mandatory means there are no surprises when the deadline arrives. BC&A will keep you informed of every development in the MTD rollout and advise you on the most practical and cost-effective way to meet your obligations.

Frequently Asked Questions For MTD

Does Making Tax Digital apply to limited companies?
MTD for Income Tax applies to self-employed individuals and landlords. Limited companies are already subject to MTD for VAT. MTD for Corporation Tax is expected to follow in later years — we will keep you informed as those details are confirmed.
You need HMRC-recognized software that can keep digital records and submit quarterly updates directly to HMRC. BC&A will advise you on the most appropriate option for your situation and can assist with setup and configuration as part of our service.
HMRC operates a points-based penalty system for MTD. Each missed submission accrues a penalty point and once a threshold is reached, financial penalties apply. Having BC&A manage your submissions eliminates this risk entirely.
Not immediately, but preparing early is strongly advisable. The threshold drops to £30,000 in April 2027 and is expected to fall further. Getting your records and software in order now avoids a rushed transition when the obligation does apply to you.

Why choose BC&A for Making Tax Digital (MTD)

We do more than keep your books in order. Our approach is proactive — we review your numbers regularly, flag opportunities and ensure you are always ahead of deadlines.

Always ahead of deadlines

We prepare and submit all accounts and filings well ahead of every deadline — you will never face a penalty with BC&A.

Real-time visibility

Cloud accounting means your numbers are always current — giving you the clarity to make faster, better business decisions.

Fixed fees — no surprises

We agree fees upfront before any work begins. No hourly billing, no unexpected invoices — just clear, transparent pricing.

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Speak to our team today for a no-obligation conversation about how BC&A can support your business. We'll recommend the right services for your situation.

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