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Making Tax Digital means choosing a tax accountant is no longer simply about filing an annual Self Assessment tax return. For affected sole traders and landlords, accounting support may increasingly involve digital records and regular reporting.
MTD for Income Tax requires compatible software for maintaining digital records and sending quarterly updates.
Look for MTD Experience
When comparing tax accountants in London, ask whether they actively support clients with MTD for Income Tax.
A good accountant should understand the practical requirements, including software, digital record keeping, client authorisation and quarterly reporting.
Ask About Software
HMRC does not provide the accounting software itself for MTD for Income Tax. Businesses therefore need to use compatible software.
Your accountant should be able to explain which software options may suit your business and how your existing bookkeeping system can be adapted.
Consider Ongoing Support
MTD is based around more regular reporting than traditional annual Self Assessment.
For this reason, ask whether your accountant provides ongoing bookkeeping and quarterly reporting support rather than only an annual tax return service.
Check Their Understanding of Your Business
Every business is different. A freelancer, consultant, contractor, shop owner and landlord may have very different bookkeeping requirements.
Your accountant should understand your income sources, expenses, accounting period and expected turnover before recommending an MTD approach.
Find the Right London Tax Accountant
The right accountant can make MTD easier to manage by combining tax knowledge with practical digital accounting support.
Before choosing an accountant, compare their MTD experience, software knowledge, services, communication and pricing structure.
A good working relationship can help you stay organised and confident as HMRC's digital tax requirements continue to develop.
