Making Tax Digital is the government's programme to move tax record-keeping and submissions online. If you run a business in Brighton, it affects you — and the rules are expanding. Here is a plain-English guide to where things stand and what you need to do.
If your Brighton business is VAT registered, you are already required to keep digital VAT records and submit your returns through MTD-compatible software. This has been mandatory since April 2022 for all VAT-registered businesses. If you are still submitting your VAT returns manually through HMRC's website, you are non-compliant and could face penalties.
From April 2026, self-employed individuals and landlords with income over £50,000 must use MTD-compatible software to keep digital records and submit quarterly updates to HMRC. The threshold drops to £30,000 from April 2027, with further expansion planned after that.
This is a significant change from the annual self assessment return you may currently use. Instead, you will submit four quarterly updates during the year, plus a final declaration at the end.
If your income exceeds £50,000 from self-employment or property: start using MTD-compatible software now (Xero or QuickBooks both qualify), ensure your records are fully digital, and speak to us about your quarterly reporting obligations.
If your income is between £30,000 and £50,000: prepare now, because April 2027 will arrive quickly. Getting the right software in place now means you will not be scrambling at the last minute.
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