search icon

The accountant’s guide to getting MTD sorted

Keep your practice and clients compliant with Making Tax Digital software for accountants and bookkeepers. Join the on-demand webinar and download the guide to get prepared for MTD for ITSA.

Not working at an accountancy or bookkeeping practice? Go to our MTD hub

Making Tax Digital for accountants and bookkeepers

Making Tax Digital was put in place to reduce tax admin for taxpayers, make it easier to submit tax returns, and reduce the likelihood of errors. These requirements can impact your practice and your clients. Download the MTD guide to get ready for MTD for ITSA.

 

  • MTD for VAT was the first wave of changes from HMRC and is mandatory for VAT-registered business and organisations with taxable turnover above the VAT threshold (£85,000).
  • MTD for ITSA is replacing how Income Tax Self Assessment works for self-employed business owners and landlords from April 2024. From April 2025, this will also apply for partnerships with individual partners. Future dates for all other partnerships with turnover above £10,000 will be confirmed.

How Making Tax Digital will affect accountants

Both you and your clients need to use MTD-compliant software to submit tax returns and store digital records. While this brings challenges across workflows for accountants and bookkeepers, by using Sage Accounting, you can easily meet key requirements.

  • Go digital: Keep digital records for all income and expenses in one place
  • Send periodic updates: Send a summary of income and expenses to HMRC every quarter for each source of business income
  • Declare annual income: Send an End of Period Statement (EOPS) for each source of business income and submit a Final Declaration (FD) to complete your client’s Self Assessment 

Sage Accounting is available through Sage for Accountants – our platform for managing both client and practice Sage subscriptions.

April 2022

MTD for VAT

All VAT-registered businesses must use recognised software to keep digital records and submit VAT returns to HMRC.
April 2024

MTD for Income Tax Self Assessment

MTD rules apply to self-employed business owners and landlords with annual income over £10,000.
April 2025

MTD for Income Tax Self Assessment

MTD rules apply to general partnerships with an annual turnover of £10,000.  All other partnerships are required to join at a later date, to be confirmed.
April 2026

MTD for Corporation Tax

MTD for Corporation Tax to be introduced at the earliest.

Get ready with Sage

MTD software for accountants

Stay compliant with Making Tax Digital software and support clients with accounting and tax subscriptions.

Educate your clients

As part of Sage for Accountants, get complimentary expert MTD advice.

  • Meet your goals with a 4-step practice success plan. Join on-demand sessions to meet MTD for ITSA
  • Access free online training for you and your team

Group your clients

Add and edit custom or pre-set tags to group clients using Client Management – complimentary with Sage for Accountants.

  • Tag clients that are affected by different MTD deadlines so that it’s easy to see which tasks you need to carry out
  • View all clients in one clear list to get organised