The UK’s Making Tax Digital (MTD) initiative is changing how businesses manage and report their finances.
For many small and medium-sized enterprises (SMEs), this might feel like yet another layer of admin but with the right support, it could be your chance to simplify your bookkeeping, stay compliant, and gain better control of your finances.
From April 2026, MTD will focus on Income Tax Self-Assessment (ITSA), which will affect self-employed people and landlords. With less than 6 months to go, we believe North Devon businesses should start preparing now.
At North Devon Accounts, we help businesses across Barnstaple, Braunton, Bideford, Ilfracombe, and the wider North Devon area get MTD-ready with clear guidance and practical support. Whether you’re a sole trader, landlord, or growing local business, we’ll make sure you have everything in place to make the transition smooth and stress-free.
What Is Making Tax Digital? A reminder.
Making Tax Digital (MTD) is the government’s long-term plan to move the UK tax system fully online ensuring tax administration becomes more efficient, accurate, and easier for everyone.
Traditionally, many businesses still use paper receipts, handwritten ledgers, or spreadsheets. These manual methods often cause mistakes, lost records, and wasted time sorting figures at year-end. MTD changes that by requiring digital record keeping and direct online submission of tax data to HMRC using approved software.
What does that mean?
- Businesses will record income and expenses digitally using accounting software like Xero or QuickBooks.
- The software links directly to HMRC, uploading your tax information automatically to reduce errors and save time.
- You send updates quarterly instead of yearly, giving a real-time view of your business performance and tax position.
MTD is already mandatory for all VAT-registered businesses, and from April 2026, it will expand to include Income Tax for sole traders and landlords earning over £50,000. Those earning over £30,000 will follow from April 2027. There is speculation that it will be imposed for those earning over £20,000 after that.
For many small business owners, MTD may seem daunting, but it’s actually a move toward simpler, smarter bookkeeping. Once set up, digital systems calculate totals, flag errors, and keep everything organised. This can mean freeing your time to focus on your business, not tax deadlines.
How can North Devon Accounts help?
Our team specialises in helping SMEs and sole traders set up and maintain digital bookkeeping systems that meet HMRC’s MTD requirements, without the jargon or stress.
Here’s how we make it easy:
- Assess Your Current Setup
We review how you currently record income and expenses, then identify what needs to change for MTD compliance.
- Choose the Right Software
We’ll recommend and help set up MTD-compatible software such as Xero or QuickBooks tailored to your business needs.
- Training and Ongoing Support
We don’t just install software and walk away. We’ll show you how to use it confidently: from logging expenses to viewing real-time profit reports.
- MTD Filing and Review
When it’s time to file, we handle the digital submission to HMRC on your behalf, ensuring your data is accurate, complete, and compliant.
This doesn’t come in until April 2026, so why start now?
The earlier you switch to digital bookkeeping, the smoother the transition will be. You’ll gain:
- Up-to-date insights into your business finances
- Less stress at tax time
- Fewer errors from manual entry
- And peace of mind knowing you’re ready when the rules become mandatory.
Local, Approachable Support.
At North Devon Accounts, we believe that good accounting is about people, not just numbers. Our friendly teams provide local, affordable help ensuring clear guidance for North Devon businesses through every step of digital transformation.
Get ahead of the deadline. Let’s make MTD simple, together.
See our MTD guide for Landlords
Based in Barnstaple and Braunton, supporting small businesses across North Devon.
Contact us today to book your free MTD readiness chat, with no obligation.