MTD is nearly here, but don't panic, we’ve got it covered
MTD (Making Tax Digital) has been talked about for a while, with HMRC extending deadlines, but finally, it looks like it’s happening, so your business needs to be ready.
MTD is HMRC’s ambitious plan to bring the UK tax system into the 21st century. Put simply, it means doing away with the traditional annual tax returns to be replaced by keeping digital records and quarterly updates alongside the annual declaration to HMRC.
The idea is to make tax administration more effective, efficient, and easier for taxpayers to get it right. Sounds great in theory, but it means significant changes to how you manage your business finances.
The latest timeline
There has been much slippage in the timeline for MTD, but here is where things currently stand.
MTD for VAT
This is already up and running. If you’re VAT-registered (even below the threshold) you should already use MTD-compatible software to submit your VAT returns.
MTD for Income Tax Self-Assessment (ITSA)
This is the next big one:
- From April 2026 – Self-employed individuals and landlords with income over £50,000
- From April 2027 – Self-employed individuals and landlords with income over £30,000
- From April 2028 – Self-employed individuals and landlords with income over £20,000
- Beyond 2028 – Potentially all self-employed people and landlords (but no confirmed date yet)
MTD for Corporation Tax and Partnerships
This one’s still in the planning stages, with no fixed start date yet. But we expect it’s coming, so it’s worth being prepared.
How Smethurst & Co can help you get MTD-ready
Instead of seeing MTD as just another tax headache, we can help you use it as an opportunity to upgrade your financial systems and get better insights into your business.
MTD software and training
- Software recommendations to suit your business and lifestyle
- Tailored training on keeping digital records that won’t make your eyes glaze over
Support packages
We offer different levels of service, depending on your needs.
Level 1: Full MTD service
Let us handle everything while you focus on your business
- We’ll set up and manage your digital records
- Handle all your quarterly submissions to HMRC
- Prepare and submit your final declaration
- Give you regular updates on your tax position
- Provide ongoing advice to minimise your tax bill
Perfect for busy business owners and landlords who break out in a cold sweat at the thought of bookkeeping or who simply have better things to do with their time.
Level 2: Quarterly review and submit
You handle the day-to-day, we check and submit
- You keep your records up-to-date using MTD-compatible software
- We’ll review your records quarterly to check everything’s in order
- We’ll prepare and submit your quarterly updates to HMRC
- We’ll handle your final end-of-year declaration
- We’ll spot opportunities for tax savings as we go
Perfect for business owners who are comfortable with basic bookkeeping but want the peace of mind of professional oversight.
Level 3: Annual Review & Submit
You handle the quarters, we handle the year-end
- You maintain your digital records and submit quarterly updates
- We’ll provide initial training and setup to make sure you’re doing it right
- We’ll be on hand for questions throughout the year
- We’ll review everything at year-end
- We’ll prepare and submit your final declaration (which replaces the tax return)
Perfect for confident bookkeepers who just want some annual expert oversight and tax planning advice.
Why use Smethurst & Co for your MTD needs?
Stay on the right side of HMRC
Making mistakes with MTD compliance could lead to penalties. We’ll make sure everything is submitted correctly and on time.
Get more than just compliance
While checking your figures, we’ll also be looking for ways to legitimately reduce your tax bill – turning a compliance exercise into a money-saving opportunity.
Future-proof your business
As MTD expands to cover more taxes, you’ll already have the systems and knowledge in place to adapt smoothly.
Save time and stress
However much or little help you need, we’ll take the MTD stress off your plate so you can focus on what you do best – running your business.
Insights and Updates
- Finances, HMRC, PAYE
Running payroll might seem straightforward on the surface, but it’s one of those areas where the details matter significantly. If you are running a small business and have staff, or...
- HMRC, PAYE, Tax
If you run a limited company, you’ll likely want to take money out of it at some point – whether that’s to pay yourself, fund personal expenses, or simply enjoy...
- Finances, Property, Tax
If you’re serious about property development, one of the most important decisions you’ll face is how to structure your property ownership. While it might seem like a technical detail you...
Our pricing promise
We don’t promise to be the cheapest, nor are we the most expensive.
What we are is fair and competitively priced. Fair in our pricing, fair throughout the work we do for you, and fair in genuinely investing time to support you and your business.