Making Tax Digital

Originally announced by George Osborne in his 2015 Budget, MTD is a Government initiative to update the UK’s tax system by implementing a fully digital tax system where taxpayers are legally obliged to keep digital records and use MTD compatible software to make tax submissions electronically.

The aim is for HMRC to become one of the most digitally advanced tax administrations in the world. The main aims of Making Tax Digital are to make the tax system:

· more effective

· more efficient

· easier for taxpayers to get their tax right

A 2017 government-commissioned report suggests errors and failure to take reasonable care accounts for £9.4bn of tax lost annually. In helping businesses get their tax obligations right first time, MTD will also provide more certainty and a clearer view of their tax position.

Who will be affected?

The first phase of MTD was introduced in 2019 and covered VAT for VAT-registered businesses with an annual turnover above the VAT threshold.

The government is extending the requirement to operate MTD to the 4.2m taxpayers with business and/or property income over £10,000, including landlords, sole traders, and partnerships, for their Income Tax obligations. These changes will apply to businesses, self-employed individuals and landlords who are chargeable to Income Tax.

    
 
 
       Posted on Google  
    Simon Tilley 
 09/09/2026
 
 
  Great service from Katie and the team at Elsby. Would highly recommend!
  
 
      Posted on Google  
    Katie Platt 
 14/08/2026
 
 
  Fabulous company, everyone is so helpful and professional! Special mention to Louise and Chrissy on the admin team, they are so efficient and hard working
  
 
      Posted on Google  
    Josh Edwards 
 07/08/2026
 
 
  Following on from my last review, I would also like to extend my sincere thanks to Louise, Katie and Lynda, who have all worked tirelessly to get my company’s accounts back on track. It really does show that teamwork makes the dream work. Once again, all of the team are only a phone call away and are always proactive, knowledgeable and efficient when dealing with any queries or issues. Their professionalism, dedication and support have been outstanding, and I can’t thank them enough.
  
 
      Posted on Google  
    NICESHOUT. DESIGNED FOR LIVES 
 05/08/2026
 
 
  Brilliant accountants. Really helpful, friendly and  very efficient. Got back to me really quickly. I dealt with Dominic and he was brilliant. Fully recommend.
  
 
      Posted on Google  
    Joshua Edwards 
 03/08/2026
 
 
  I can’t recommend Elsby & Co highly enough. They have helped get my business back on track and ensured everything is in order and on the right side of HMRC. Nothing is ever too much to ask, and the service has been outstanding from day one. Jamie (my account manager)is always at the end of the phone to answer any questions, no matter how big or small, and his advice has been invaluable in helping me run my business with confidence. If you’re looking for an accountant who is professional, approachable, and genuinely cares about your business, I wouldn’t hesitate to recommend Elsby & Co.
  
 
      Posted on Google  
    A. Hooton 
 30/07/2026
 
 
  I can’t praise Elsby accountancy enough. An excellent highly professional service with clear communication, reliability and friendliness. My special appreciation goes to James Fairweather who leaves no question unanswered with his astonishing knowledge and ultra fast responsiveness . I couldn’t be in better hands and have total peace of mind. Highly recommended !
  
 
      Posted on Google  
    Russ Edwards 
 29/07/2026
 
 
  Great Company, knowledgeable, very professional, prompt, super helpful, nothing seems to much trouble, I would highly recommend them.
  
 
      Posted on Google  
    natasha arnold 
 29/07/2026
 
 
  Elsby have been doing my tax returns for nigh on 10 years and from the start they were so helpful with both advice and tips to ensure my return was both comprehensive and accurate. They have saved me the hours of work preparing my tax return that makes me so relieved that I would pay any price; Their charges are great, given how consistently reliable they are. Can  highly recommend their services.
  
 
      Posted on Google  
    Mark Ferguson 
 27/07/2026
 
 
  Having recently moved More Fire PR Ltd across to Elsby & Co, I've been extremely impressed with the service I've received. Claire, Harry and the team have been responsive and proactive throughout the transition, taking the time to explain the reasoning behind their advice rather than simply processing accounts. They've helped streamline payroll, improve our tax planning, introduce Xero and provide much greater visibility of the business finances. No question has been too much trouble, and I've always received clear, prompt and professional responses. As a business owner, it's reassuring to have accountants who genuinely act as trusted advisers rather than just year-end compliance specialists. I'd have no hesitation in recommending Elsby & Co to other owner-managed businesses.
  
 
      Posted on Google  
    S RC 
 12/06/2026
 
 
  I've been suing Elsby & Co for a number of years and I've found the the perfect match for my tax affairs.
  
 
  
  
 
 
   Google rating score: 5.0 of 5, based on 121 reviews

MTD - VAT

Making Tax Digital (MTD) makes it easier for businesses and individuals to record and declare tax to HMRC. Under the new rules, HMRC require eligible businesses to record transactions digitally and submit VAT returns to HMRC using compatible accounting software.

MTD – Income Tax Self-Assessment

Making Tax Digital for Income Tax also known as MTD for Income Tax Self-Assessment (MTD ITSA) will change the way millions of business owners and landlords report their earning to HMRC, in essence, making it easier for businesses and individuals to record and declare their tax.

Timeline for MTD:

· From April 2019: MTD VAT is mandatory for VAT-registered businesses and organisations with taxable turnover above the VAT threshold of £85,000.

· From April 2022: It became a legal requirement for all VAT registered businesses to register for Making Tax Digital (MTD), thereby removing the VAT threshold requirement. Click here to read more about MTD – VAT

· From April 2024: MTD Income Tax Self-Assessment (ITSA) will be mandatory for the self-employed and those with income from property. It will only apply to those with turnover from self-employment plus gross income over £10,000. Click here to read more about MTD – ITSA

· From April 2025: MTD ITSA will be mandatory for general partnerships with annual turnover greater than £10,000

· From April 2026: MTD Corporation Tax. The MTD corporation tax consultation suggests a pilot could be launched in 2024 with a full rollout not before April 2026.

Our cloud accounting credentials

We don’t just understand digital and cloud accounting, we excel at it. We’re a Xero Platinum Partner and were the first accountancy firm in the world to receive a Xero migration certification. Our 5-star ratings on Reviews.io and Google are a result of the strong relationships, satisfaction and trust we have built with our clients.

We can support you with the following:

· Transitioning to accounting software, including advising on the best options and providing software training

Providing bridging software
Registering for MTD
Reviewing current processes for confidence of compatibility
Advice/support on claiming MTD exemptions

We focus on giving you the right advice to help your company grow

Get a Quote