--- title: When Does Making Tax Digital Begin for Small Businesses? description: Discover when Making Tax Digital starts for small businesses and landlords, and how early preparation ensures compliance and smoother reporting. image: https://www.vanilla-accounting.co.uk/hubfs/When-Does-Making-Tax-Digital-Start.png --- [![header-logo](https://www.vanilla-accounting.co.uk/hs-fs/hubfs/Vanilla-Accounting-Theme/Images/logo.webp?width=235&height=47&name=logo.webp "header-logo")](https://www.vanilla-accounting.co.uk/) - [0115 945 2222](tel:0115%20945%202222) - [info@vanilla-accounting.co.uk](mailto:info@vanilla-accounting.co.uk) - [Free Business Finance Review](https://www.vanilla-accounting.co.uk/get-your-free-financial-health-check-report) - Outsourced Accounting Services - [Outsourced Accounting](https://www.vanilla-accounting.co.uk/outsourced-accounting) - [Payroll](https://www.vanilla-accounting.co.uk/payroll-vanilla-accounting) - [Xero Accountants](https://www.vanilla-accounting.co.uk/xero-accountants) - Business Advisory Services - [Business Growth Consultancy](https://www.vanilla-accounting.co.uk/business-growth-consultants) - [Virtual Finance Director](https://www.vanilla-accounting.co.uk/virtual-finance-director) - [Management Accounting](https://www.vanilla-accounting.co.uk/management-accounting) - Compliance Services - [Bookkeeping](https://www.vanilla-accounting.co.uk/bookeeping-accountancy) - [Tax Services](https://www.vanilla-accounting.co.uk/tax-services) - [About Us](https://www.vanilla-accounting.co.uk/about-us) - Resources - [Blog](https://www.vanilla-accounting.co.uk/blog) - [Free Guides](https://www.vanilla-accounting.co.uk/central-resources) - [Case Studies](https://www.vanilla-accounting.co.uk/blog/tag/case-studies) - [Portal](https://portal.vanilla-accounting.co.uk/signin) - [Contact Us](https://www.vanilla-accounting.co.uk/contact-us) # Blog ![Two business partners analyse their tax invoice for this year. ](https://www.vanilla-accounting.co.uk/hubfs/When-Does-Making-Tax-Digital-Start.png) ## When Does Making Tax Digital Start? 20th November 2025 ​At the risk of appearing to be late for the party, Making Tax Digital (MTD) is already an active requirement for many UK businesses. MTD became mandatory in April 2019 - the VAT reporting for businesses and self-employed individuals with a turnover above £85,000 per annum. Since then, Making Tax Digital has been rolled out in successive phases, with the landscape continuing to evolve and new requirements on the horizon. This article explains the ongoing MTD timeline in order for SME business owners to prepare effectively. [Book A Consultation](https://cta-eu1.hubspot.com/web-interactives/public/v1/track/click?encryptedPayload=AVxigLIbCskAi6MPLfYduWs%2B3QhywvQhfdsGVncDdDKjcJFND6iMgKbw3NgAl0ZKXeppZHiiCzlc%2Fv1Z0LPDg%2F7G%2B78pjLAiftEJYHDWHUHBGUDo5oRko0J3Bm0I3gQw4vMSK%2F6kl6AvNgLrXq%2BYPhIfhg1JbFhEkbgUJ24eiI91j4rtcC8gpb7FtQz3mJ%2FHfZ9QY8PXCHNfTHY%3D&portalId=139607054) ## **What Is The Current Status Of MTD?** The most significant upcoming change will affect self-employed individuals and landlords. From April 2026, people with an annual income of over £50,000 from self-employment or rent must comply with the MTD requirements for income tax. This means [maintaining digital records](https://www.vanilla-accounting.co.uk/outsourced-accounting) through an MTD-compatible accounting platform, and submitting quarterly updates rather than an annual self-assessment return. Business owners already registered for VAT are likely, therefore, to already be familiar with the MTD requirements. However, for smaller enterprises approaching the VAT threshold or self-employed professionals crossing the £50k income line, it’s worth making the preparations now so you’re not surprised next year. ## **Why It Pays To Act Now** What many business owners don’t often realise is that preparation time is essential for a smooth transition. Implementing new systems, getting familiar with practices, and establishing efficient digital workflows can often take months, rather than weeks or days. Starting early gives you the space to identify potential issues and resolve them before compliance becomes mandatory. The transition also gives you a good opportunity to modernise your financial management, especially if you still largely use spreadsheets. Digital record-keeping gives you better control and oversight of your cash flow, expenses, and month by month profitability, allowing you to make better investment and [tax planning](https://www.vanilla-accounting.co.uk/blog/tax-briefing-spring-2025) decisions. ## **How An Outsourced Accounting Service Can Help You** Many SMEs are asking “what is an outsourced accountant” as they consider their upcoming MTD options. An [outsourced accountant](https://www.vanilla-accounting.co.uk/blog/does-xero-replace-an-accountant) is a bookkeeping and accounting specialist whose job is to manage your financial processes remotely, providing their expertise without the overhead costs of employing an in-house accountant. In terms of MTD compliance, working with an outsourced accountant, such as Vanilla Accounting, has several advantages. For example, as they are already familiar with the compatible software and understand HMRC’s reporting requirements, they can help you with the technical setup while you focus on running your business. An accountant will also stay current with regulatory changes and updates, providing ongoing compliance without you having to stay glued to the HMRC website for every new change. But how much does [outsourced accounting](https://www.vanilla-accounting.co.uk/blog/will-outsourced-accounting-save-time) cost? For this question, fees vary based on your location in the country, the complexity of your business, and the service level you require. Basic MTD compliance support is not usually expensive – often in the range of £80-£300 per month for straightforward SME business models, while a more comprehensive service that includes strategic advice and financial planning could cost upwards of £500-£1500 monthly. It is worth shopping around for a service level and package that suits the current and future trajectory of your business. When implemented as a business investment, the fees paid to an outsourced accountant should pay for themselves through improved financial visibility, reduced compliance risk, and time savings. ## **Find Out More** If you would like to find out [more about MTD compliance](https://www.vanilla-accounting.co.uk/outsourced-accounting) and how we can support you, please contact one of the team at Vanilla Accounting today by [clicking here](https://www.vanilla-accounting.co.uk/contact-us), or by calling 0115 647 4506. 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