Making Tax Digital
Digital tax compliance, made simple.
Making Tax Digital (MTD) is the biggest change to UK tax administration in a generation. VAT-registered businesses are already required to keep digital records and submit VAT returns through MTD-compatible software. From April 2026, self-employed individuals and landlords with turnover above £50,000 will need to follow MTD for Income Tax Self Assessment (MTD ITSA), with the threshold falling to £30,000 from April 2027. Heartlands makes the transition painless: we choose the right MTD-compatible software, configure your digital records, submit quarterly updates to HMRC, and produce the end-of-period statement and final declaration. You stay compliant without learning the technology yourself.
What this service does
MTD removes the annual paper tax return and replaces it with quarterly digital updates and a final declaration. Heartlands handles the full MTD journey: software selection and setup, migration of existing records, digital linking of bank feeds, quarterly submission of income and expenses to HMRC, category mapping that matches your business model, and the end-of-period reconciliation. We also provide ongoing guidance so you understand what the quarterly figures mean and how much tax to set aside. For businesses already VAT-registered, we ensure your VAT MTD and MTD ITSA workflows do not conflict.
- Achieve full MTD compliance ahead of HMRC deadlines
- Keep digital records in HMRC-approved software
- Submit quarterly updates accurately and on time
- Understand tax liability throughout the year, not just at year-end
- Removes the risk of HMRC penalties for non-compliance with digital record-keeping
- Provides early visibility of tax bills so you can budget and set money aside
- Reduces the year-end Self Assessment rush by spreading updates across the year
- Keeps your accountant and HMRC data in sync automatically
Service capabilities
The measurable upside
Quarterly updates take minutes once the software is configured, compared to days of year-end reconstruction.
Early visibility of tax liability helps avoid cashflow shocks and late-payment interest from HMRC.
All digital records are backed up, encrypted and accessible through a secure client portal.
Quarterly submissions keep you within HMRC's MTD rules and reduce the risk of penalties and corrections.
Your bookkeeping, VAT and MTD ITSA flow through one connected system and one accountable team.
Sectors we work with
What sets Heartlands apart
Chartered partners with 15+ years across UK SMEs, owner-managed businesses and scaling startups.
ICAEW, ACCA and CTA qualified specialists handling every engagement end-to-end.
From onboarding and software setup to filing, reporting and HMRC representation — one accountable team.
Birmingham-based with a direct line to your partner. No call centres, no offshoring, no surprises.
We train your team on Xero, QuickBooks and reporting workflows, then keep the system healthy month after month.
How we deliver, end-to-end
- 01ConsultationA free 30-minute scoping call to understand goals, structure, deadlines and pain points.
- 02AssessmentWe audit your books, filings and software stack to surface risks and quick wins before quoting.
- 03PlanningA written engagement plan: scope, deliverables, deadlines and a fixed monthly fee — no hourly billing.
- 04ImplementationSoftware configured, ledgers migrated, controls set up and the team onboarded with zero downtime.
- 05TestingReconciliations, trial runs and sign-off on the first month's outputs before going live.
- 06TrainingHands-on training for your team plus written SOPs so the process is sustainable, not dependent on us.
- 07Ongoing supportContinuous filing, monthly reviews, unlimited email support and proactive deadline management.
Frequently asked questions
Simple, compliant & stress-free
Making Tax Digital is HMRC's digital tax initiative that requires businesses and landlords to keep digital records and submit updates through MTD-compatible software. Heartlands makes the switch effortless.
- Digital records required
- VAT returns through MTD-compatible software
- Spreadsheets alone no longer sufficient
- VAT businesses above £85,000
- Applies to all VAT registered businesses
- Digital records compulsory
- Self-employed & landlords
- Income above £50,000
- Digital records
- Quarterly HMRC submissions
- Final declaration
- Self-employed & landlords earning over £30,000 join MTD for Income Tax
- Businesses below £30,000 will join in a future HMRC phase
What our clients say
Heartlands turned our making tax digital from a year-end headache into a quiet, predictable process. Their partner-led approach is the difference.
Switched from a high-street firm and immediately recovered tax we didn't know we'd overpaid. Communication is faster, advice is sharper.
Genuinely proactive — they call us before deadlines, not the other way round. Fixed fees, no surprises and our books have never been cleaner.
Ready to talk about making tax digital?
A free 30-minute scoping call with a chartered partner. No obligation, no sales pitch — just clear answers and a fixed quote if it's a fit.