Making Tax Digital (MTD): How to Stay Compliant and Avoid Extra Accounting Costs

HMRC is rolling out it’s MTD changes which will have added costs and will require careful planning to ensure that you remain compliant with the changes.

The changes

• From April 6^th, 2026 – MTD is mandatory for sole traders and landlords with income over £50,000

• From April 6^th, 2027 – MTD is mandatory for sole traders and landlords with income over £30,000

• From April 6^th, 2027 – MTD is mandatory for sole traders and landlords with income over £20,000

The requirement is for accounting records to be maintained and submitted quarterly in addition to the current requirements.

The Problem

As the changes will require additional admin, most accountants will be increasing their fees accordingly. In some cases, this may double your accounting costs at a time when all of us are struggling with small margins and creeping cost of living.

The solution

Here at Peak District Accounting & Advisory, we offer setting up and training bundles starting from as little as £200. We will set you up on your own accounting software, import all your previous data and information. We will then take the time to train you to do your own bookkeeping and filing with MTD and event VAT. We then provide ongoing support and assistance to make sure you don’t feel lost or confused.

You can still work with your current accountant for end-year tax consulting, but you would save potentially thousands of pounds on additional bookkeeping and filing costs.

Call today to find out more about MTD and what you can do about it.