Making tax digital

Meeting the digital challenge of the future

HMRC introduced the first phase of its new digital tax initiative, Making Tax Digital (MTD), on 1 April 2019. There are further deadlines scheduled beyond 2020.

At DRS we are committed to helping our clients not only meet their new compliance obligations created by MTD but to making the process of moving across and complying with their obligations a smooth transition with minimal hassle and headache.

What is Making Tax Digital?

• Digital record-keeping & quarterly reporting: Businesses and individuals will keep records digitally using HMRC-approved software and submit summaries (quarterly for self-employed/landlords and VAT-registered businesses)
• Finish-of-year declaration: A final declaration replaces your standard annual Self‑Assessment.

Making Tax Digital deadlines:

* Based on gross income before expenses

Why This Matters for You

• Better cash flow management: Quarterly updates let you track finances in near real time and avoid end‑of‑year stress .
• Fewer errors, faster filing: Automated digital processes reduce mistakes and speed up tax prep
• Avoid penalties: Late filing penalties under MTD are sharper—upto 10% of tax owed after 31 days late—so digital compliance is crucial

Penalties Have Increased

From April 2025:

• 3% penalty: 15 days late; 3% again at 30 days.
• 10% after 31 days, plus additional interest and charges

This applies across MTD users, including self-employed and landlords.

What You Need to Do

1. Check your income against thresholds using Gov.uk criteria
2. Get MTD-compatible software (many options are available)
3. Sign up for MTD ahead of mandate—HMRC sends letters to notify eligible taxpayers starting April 2025
4. Start digital record-keeping now, submitting quarterly digital summaries.
5. Complete end-of-year declaration and pay the balance by 31 Jan following the tax year.

Support & What We Offer You

• Personal onboarding: We’ll guide you through software selection, setup, and transition.
• Quarterly reminders: We’ll notify you of all MTD submissions and deadlines.
• Ongoing support: Ensure compliance, accuracy, and timely filing—plus help with software glitches.

Client Benefits at a Glance

• 📈 Better financial control throughout the year
• 🔒 Reduced chance of fines through proactive compliance
• ⏱️ More time for your core business by streamlining admin
• 💼 Strategic insights via real-time updates
• 🤝 Trusted adviser relationship with our team managing the MTD journey

Ready to Get Started?

• ✔️ Register with MTD‑compatible software
• ✔️ Sign up via HMRC (we can do it for you)
• ✔️ Kickstart quarterly digital reporting today

Let’s make tax stress-free and digital-ready — contact us now for your tailored MTD transition plan!

Stay Informed

MTD is a cornerstone of modernising UK tax—don’t get left behind. The next phase arrives in April 2026 and penalties are sharper than ever.

Early action = smoother compliance + better financial control.