Introducing Making Tax Digital

Its here Making Tax Digital (MTD) starts in April 2026 – are you ready?

What Is It?

Making Tax Digital for Income Tax (MTD for IT) is a government initiative designed to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.

The first return will be due at the end of June 2026.

This means you will need to complete 4 quarterly submissions as follows for your self-employment and/or rental income:

01/04/2026 to 30/06/2026 – due 07/08/2026

01/04/2026 to 30/09/2026 – due 07/11/2026

01/04/2026 to 31/12/2026 – due 07/02/2026

01/04/2026 to 31/03/2027 – due 07/05/2026

Who does it apply to?

2026 :

• Sole trade businesses and or rental income with a turnover of over £50,000

2027:

• Sole trade businesses and or rental income with a turnover of over £30,000

The government have advised that plans will be set out in 2026-2027 for turnovers under the £30,000 threshold and also Partnerships.

What do you need to do?

As a business you will be required to use some type of digital accounting software or app to keep your records up to date and by doing so be able to update HRMC on a quarterly basis.

An annual summary is then completed with tax claims and a declaration of other income. This is similar to what you already submit with your self assessment tax return and includes all other income and expenditure.

How Can MGD Help You With Making Tax Digital(MTD)

McGinty Demack has online accounting packages to help businesses comply with Making Tax Digital. For more details complete the enquiry form below.

We are presenting the following options for clients.

Option 1: Let Us Handle It 

Clients continue to provide us with your records, but now on a quarterly basis, and we will:

• Process your bookkeeping
• Submit the required MTD quarterly and final returns on your behalf

This option ensures full support and minimal disruption to your routine.

Option 2: Do Your Own Bookkeeping 

If you’d prefer to manage your own bookkeeping, you can use MTD-compatible software as detailed below or another of your choice

These platforms allow you to maintain digital records and submit the necessary updates to HMRC yourself. We’re happy to provide guidance on setup and assistance with submitting the first return if needed. We can also offer some basic training on the use of the software, so you know how to approach your bookkeeping.

With this option you can opt for:

• File your own MTD return
• Ask us to check and file your return for peace of mind.

Our team are able to assist in the introduction of the above systems or others which may be of preference.

McGinty Demack accountants also provide implementation of each of the above systems

We can provide training on each of the above systems.

Software

In any of the above situations, you may be looking at one of the labelled packages which are available in the market for the preparation of digital accounts.

We have provided below details of some of the packages that we will be recomending to clients. There are of course others that may suit your specific business better and we are happy to advise.

Sage Certified Expert    

A well-established player in computerised accounts and bookkeeping. It integrates very well with its own modules such as payroll. It is comprehensive built-in accounting package which also has stock and product management modules included.

Xero Certified Advisor 

This product is building a strong reputation in the market. It integrates with many other web-based applications which may already be being used. Xero is a modular based and as such, you can subscribe to what you require. This is a monthly subscription based payment rather than a purchased package.

QuickBooks Gold Proadvisor 

This product is a competitor to Xero, less functionality, maybe. But may provide a cheaper cost alternative to Xero.

For a free Quickbook licence for 12 months click here

McGinty Demack is keen to help business develop their accounting systems through the introduction of computerised accounts not just in preparation for the future introduction of making tax digital but more importantly to make businesses’ more efficient.

Hammock 

Hammock is a landlords software to make the running of your rental accounts easier and making tax digital compliant.

So there remains one more question. Why wait for the government?

We are here to help you transition smoothly to the new making tax digital system. We are making tax digital ready, are you?