Making Tax Digital: What Small Businesses Need to Know in 2025

HMRC’s Making Tax Digital (MTD) initiative has been on the horizon for a while now, but with new deadlines approaching, many small businesses across the North West are starting to feel the pressure. From April 2026, most self-employed individuals and landlords earning over £50,000 will need to comply with MTD for Income Tax Self Assessment (ITSA), with those earning over £30,000 following in 2027. This means digital record-keeping and quarterly updates will become a regular part of business life.

At McKendrey Accountants LTD, we’re already helping clients transition to compatible software like Xero and QuickBooks. It’s not just about ticking HMRC’s boxes – it’s about giving business owners better visibility over their finances. With up-to-date figures at your fingertips, it’s easier to plan ahead, spot issues early, and make informed decisions.

If you’re still using spreadsheets or a paper-based system, now’s the time to consider a switch. While the deadlines might sound far off, the earlier you adapt, the smoother the transition. We’re already seeing the benefits for clients who’ve embraced digital tools – less time spent chasing receipts, and more time focused on running their business.

Whether you’re a sole trader in Horwich or running a growing business across Bolton and beyond, we’re here to help make MTD feel a little less daunting. Drop us a line if you’d like a free chat about how to get started.