Happy New Year!

Paula Veysey Smith • 3 January 2018

New Year – and a new tax regime

MTD?! Does this mean “More Tax Demands”? Yes, most certainly! Will it mean “My Tax Diminishes! I’ll let you answer that one!

MTD, Making Tax Digital – this is The Revenue’s present to us all – and it’s not one you can take back to the shops and exchange!

According to the policy paper published by HM Customs and Excise in July 2017 Making Tax Digital will “make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the end of the annual tax return for millions.”

If that sounds like good news please beware. My article published on the 2nd October 2017 and available on the website discussed the pitfalls of MTD and its application to personal tax returns. And that didn’t even touch on the issue of dynamic tax coding – one I will save for a later article.

MTD will affect the way we report practically every tax; for VAT registered businesses this may come sooner than you think. Draft VAT regulations, and a notice to require taxpayers to comply with MTD reporting, were released for consultation on 18th December 2017, with a deadline for commenting set at 9th February 2018. This consultation period fits neatly over the busiest period for accountants and tax advisers, thus reducing the likelihood of detailed feedback from those who will be at the sharp end of the MTD regime, but I’m sure that is just a coincidence.

One of the main issues surrounds functional compatible software as only such software will be able to submit VAT returns under MTD. The HMRC portal for submitting VAT returns does not meet these standards. This means that companies using spreadsheets or other non-compliant software to calculate VAT and upload it to HMRC through their portal are not going to be MTD compliant. And we have till the 9th February to make sure the Revenue understands the further pressure this will put on small business.

MTD is one of the biggest changes in tax reporting in the UK for the past 20 years – it’s like The Revenue are playing catch up with the digital age. I will ensure that you are kept up to date with the new regulations and please do email me with any concerns that you may have.

Wishing you all a Prosperous New Year.

HMRC mileage rate increase 2026 -- car dashboard representing business travel costs

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M is for Measurable

by Paula Veysey-Smith • 31 May 2026
You've made your goal specific. Now how do you know you're actually getting there? The answer is in the M. "The more you can define your goals, the more likely you are to achieve them." Last time we looked at S for Specific — turning vague wishes like "I want to get fit" into something concrete and actionable. If you missed it, go back and start there, because everything builds on that foundation.  Now we move to M for Measurable. And this one is just as important, because a goal without a measure is still just a wish.

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by Paula Veysey-Smith • 3 May 2026
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MTD for Income Tax Is Here: What It Means for You

by Paula Veysey-Smith • 13 April 2026
HMRC’s new system Making Tax Digital for Income Tax Self-Assessment has now arrived! This isn’t just a regulatory update. It’s a shift in how your records are kept, how often you report, and what you will need to do throughout the year. What’s changing for you: Under MTD for Income Tax, if you’re a sole trader or landlord within scope: You’ll need to keep digital records Quarterly updates will need to be digitally submitted to HMRC An End of Period Statement (EOPS) will need to filed A Final Declaration will be needed to finalise your tax position for the year In short: instead of one annual deadline, your tax reporting becomes a year-round process. Why using compliant bookkeeping software is now essential? To meet MTD requirements, HMRC requires fully digital record keeping and submissions . Manual spreadsheets alone are no longer sufficient You’ll need to use MTD-compliant bookkeeping software Sending your accountant paper records or incomplete information will cause delays The upside (it’s not just compliance) While MTD is mandatory, it also brings real benefits: Clear visibility of your tax position throughout the year Better cash flow planning Fewer surprises at year-end What support do you need to navigate this new system? The support of qualified accounting professionals is now more necessary than ever. We don’t expect you to navigate this alone and here’s how MPower Accounting can ensure that you not only comply with, but thrive under, this new reporting requirement. We’ll help you choose and set up the right software We work with trusted platforms such as Xero, QuickBooks, FreeAgent and others. We’ll recommend what fits your business best and get everything set up correctly. We’ll ensure you stay compliant Review your records regularly Submit your quarterly updates accurately and on time Handle all year-end submissions We’ll take the stress off your shoulders With the right system in place: Your records stay up to date automatically We can spot issues early You avoid last-minute pressure and surprises All we’ll need from you to make MTD work smoothly, is access to your chosen bookkeeping software, regular uploaded receipts so we can keep records current and a little of your time when there are questions. The more up-to-date your records are, the more value and proactive advice, we can provide. Your role is simple but important. Letting us take the strain of compliance will save you time and cause significantly less stress, enabling you to focus on what is important, that is running your business successfully. Next steps If you haven’t already: Speak to us about getting set up on MTD-compliant software Let us review your current bookkeeping process Make sure you’re ready for quarterly reporting
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