What is Making Tax Digital?
Making Tax Digital (MTD) is the UK government’s programme to modernise the tax system by requiring businesses to keep digital records and submit tax information electronically. Instead of relying only on annual returns, businesses and self-employed individuals will increasingly need to use compatible software and submit updates digitally.
MTD for VAT has already become standard for VAT-registered businesses. From 6 April 2026, MTD for Income Tax Self Assessment (ITSA) will apply to many sole traders and landlords. This makes it even more important for London businesses to prepare in advance and understand how digital compliance works.
Who needs to comply and when?
If you run a sole trader business, partnership, or receive rental income in the UK, you may need to sign up for MTD ITSA once your income reaches the qualifying threshold. This means you will need to:
- Keep digital records of income and expenses
- Submit quarterly updates to HMRC
- Finalise your business income at the end of the tax year
Businesses already registered for VAT should also make sure they remain compliant with MTD for VAT. If you need help with VAT registration or filing, see our VAT accountants service.
How to prepare your SME for MTD
- Choose the right accounting software. Select HMRC-compatible software such as Xero or QuickBooks that supports MTD. BNA Consulting can help integrate the right solution into your existing processes.
- Digitise your records. Replace paper invoices and spreadsheets with digital bookkeeping systems so your records stay organised and accurate. Our bookkeeping services can help streamline this process.
- Understand reporting deadlines. Quarterly submissions will become a key part of the MTD process, so businesses should plan ahead to avoid missed deadlines and penalties.
- Register early. You may need to create and authorise an HMRC account for MTD. Getting ready early helps avoid last-minute problems.
- Get professional support. An experienced accountant can help you stay compliant and reduce the risk of mistakes.
Why choose BNA Consulting?
We are a bilingual English and Russian speaking accounting firm based in London. Our team understands the practical challenges faced by small businesses, landlords, and self-employed clients when adapting to new tax rules.
- Personalised advice for London SMEs and self-employed clients
- Support in both English and Russian
- Expertise in VAT compliance and MTD ITSA
- Practical help with self-assessment tax returns
- Reliable support with annual accounts and financial reporting
Our goal is to simplify compliance so you can focus on running and growing your business.
Need help getting ready for Making Tax Digital?
BNA Consulting supports London businesses with bookkeeping services, VAT support, payroll outsourcing, and self-assessment tax returns.
Contact BNA Consulting today to speak with an English and Russian speaking accountant in London.
Related reading
- Making Tax Digital for ITSA (2026 UK Guide)
- What is Making Tax Digital (MTD) UK? Simple Guide for Businesses
- MTD ITSA Penalties Explained: What UK Self-Employed Taxpayers Must Know
- Preparing for MTD ITSA Deadlines in 2026: A Practical Action Plan by BNA Consulting London
- How a Bookkeeping Service in London Helps with Tax Compliance and Reporting