Compliance
Making Tax Digital: what it means for small businesses now
Digital records and software-based filing are becoming the default. Getting ahead of it is far cheaper than catching up.
12 May 2026 · 4 min read
Making Tax Digital is HMRC's programme to move tax reporting onto digital records and compatible software. It already applies to VAT-registered businesses, and applies to income tax for some sole traders and landlords, depending on qualifying income and the applicable start date. Check current HMRC guidance for your circumstances.
What it requires in practice
- Digital records of your income and expenses, kept as you go.
- Compatible software that can submit returns directly to HMRC.
- Digital links where required between systems used for Making Tax Digital.
- For those within Making Tax Digital for Income Tax, quarterly updates alongside the required year-end tax return.
Why moving early helps
Businesses that adopt cloud accounting ahead of a deadline get the benefit twice: they meet the requirement calmly, and they gain visibility of their numbers in the meantime. Bank feeds, receipt capture and automatic reconciliation reduce the admin rather than adding to it.
If you are still working from spreadsheets or paper, our team can help organise the transition. We agree the scope and timing around your records, software and business needs.
This article is general information, not advice for your specific circumstances. Check current requirements before acting. Our team can help you understand how the topic relates to your business and agree any support you need.