Making Tax Digital (MTD) for Income Tax is one of the biggest changes to the UK tax system in recent years, and businesses across West London—including Acton and Ealing—need to start preparing now.
HMRC’s initiative is designed to modernise tax reporting by replacing manual processes with digital systems. Instead of relying on spreadsheets or paper records, businesses will be required to use compatible accounting software to track income and expenses and submit updates directly to HMRC.
From April 2026, MTD will apply to individuals and businesses with annual business or property income over £50,000. This threshold will gradually reduce:
- April 2027: income over £30,000
- April 2028: income over £20,000
Under the new system, you will need to:
- Keep digital records of all income and expenses
- Use MTD-compatible software
- Submit updates to HMRC every quarter
While this may seem like an administrative burden at first, there are clear advantages. Digital systems can improve accuracy, reduce errors, and give you real-time visibility over your finances—helping you make better business decisions throughout the year rather than at year-end.
At GnC Accounting, we are supporting businesses across Acton, Ealing, and the wider West London area to transition smoothly to MTD. Whether you are a sole trader, landlord, or growing business, early preparation is key.
We can help you:
- Choose and implement the right software
- Set up efficient digital record-keeping systems
- Stay compliant with HMRC requirements
The earlier you prepare, the easier the transition will be. If you’re unsure how MTD will affect you, now is the time to seek advice and get your systems in place.