07/08/2026
MTD Income Tax!
The deadline is here! How did it go? Everything filed?
As an accountant who had to charge my clients more and ask them to pay for accounting software, my initial thoughts on MTD Income Tax were not positive. However, now that the first quarter is done and dusted, my thoughts are different. Here is my experience:
1️⃣ MTD will definitely help to keep sole traders more organised and prepare for taxation. I provided each of my clients with an accurate and easy-to-read profit and loss statement for the quarter, along with the MTD return. They will get one each quarter. This really helps them see how the business is performing financially, as well as their potential tax bill and savings for the year.
2️⃣ Not all software is the same. I tried a few packages for MTD Income Tax, depending on what my clients were using or had signed up for. By far, Xero was the easiest to use for preparing and filing the return. It was also the most versatile and forgiving. Get 90% off Xero here: https://xero5440.partnerlinks.io/BookkeepingMaster It's great for MTD Income Tax.
3️⃣ There will be late filings. Unfortunately, just like VAT, self-assessment, and corporation tax filings, there will be individuals who are just not organised enough, or are drowning in terrible circumstances, to file their returns on time. This means that there will be financial penalties and clients who get themselves into a real mess. However, I have no idea what the answer is 😕
4️⃣ Overall, MTD Income Tax is a very positive move if sole traders and landlords embrace accounting software and what it can provide. However, the frustration of added accounting and software costs is totally understandable.
If you need help with MTD, drop me a message or contact me: https://www.smaccountinguk.com/contact-an-accountant
