Stay compliant with HMRC’s Making Tax Digital requirements.
PMR Accounting
Making Tax Digital (MTD) is a major change introduced by HMRC that will affect how self-employed individuals and landlords report their income and tax. Instead of submitting a single annual Self-Assessment return, you will need to keep digital records and send quarterly updates to HMRC using approved software.
The aim of MTD is to make tax reporting more accurate, efficient, and easier to manage. Currently, there are no plans for it to impact payment deadlines.
These new requirements may feel confusing and time-consuming. Let PMR Accounting support you to understand if/how you are affected and what is required. We can help you choose and set up the right accounting software and stay fully compliant with HMRC requirements.
Who Making Tax Digital applies to
Making Tax Digital for Income Tax will apply to self-employed individuals and landlords based on their total annual self-employed and property income (before expenses).
The rollout timetable is:
This applies to total income from self-employment plus rental income (combined), not profit. Income from partnerships is currently out of scope. If you are a sole trader, landlord, or both, you will likely need to comply with Making Tax Digital in the coming years.
What will change under Making Tax Digital
Under the new system, you will no longer submit just one annual Self-Assessment return. Instead, you will be required to:
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Keep digital records of your income and expenses
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Submit quarterly updates to HMRC using approved software
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Complete a Final Declaration at the end of the tax year to confirm your overall income and tax position
This new approach allows HMRC to receive more regular updates and helps reduce errors.
Using accounting software for Making Tax Digital
To comply with Making Tax Digital, you will need to use compatible accounting software to keep your records and submit quarterly updates and an Final Declaration. PMR Accounting works supports trusted cloud accounting platforms including:
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Sage Business Cloud
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Xero
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QuickBooks
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FreeAgent
PMR Accounting can help you choose, set up, and use the right software for your business.
How PMR Accounting can help
PMR Accounting supports small businesses and landlords across Surrey with Making Tax Digital compliance. We can help you:
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Understand how Making Tax Digital affects you
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Select and set up suitable accounting software
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Maintain accurate digital records
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Submit quarterly updates to HMRC
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Complete your Final Declaration correctly and on time
With over 25 years of accounting experience, Pam provides clear, practical support to help you stay compliant and avoid unnecessary stress.
Get ready for Making Tax Digital
If you are a sole trader or landlord in Surrey, now is the right time to prepare for Making Tax Digital. PMR Accounting can guide you through the transition and ensure everything is set up correctly.
Email: pam@pmraccounting.co.uk
Phone: 01932 460 150