Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, is advising business owners to act now ahead of the forthcoming Making Tax Digital (MTD) mandate.

MTD is the government’s initiative to implement a fully digital tax system in the UK, whereby taxpayers keep digital records and use MTD-compatible software to make tax submissions electronically.

From April 2026, self-employed individuals and landlords with incomes of more than £50,000 will be mandated into MTD. Those with income from self-employment and/or property of between £30,000 and up to £50,000 will be mandated from April 2027.

Catherine Livingstone, partner in Wbg’s Business Advisory department, urges business owners not presently operating digital accounting software to act now as either they will need to learn how to use digital accounting software, or will need to instruct their advisor to do so.

MTD represents a real drive from all organisations that previously only produced an annual set of accounts or annual personal tax return, to produce quarterly accounts with HMRC via digital software.

“This could represent a significant change for some organisations used only to preparing annual accounts and tax returns, as there are many business owners yet to embrace digital technologies,” said Livingstone.

“I would advise organisations to be proactive about MTD and, if they are not presently operating a digital financial reporting system, seek professional advice and develop a plan, whether that be to adopt the digital technology or to work in conjunction with a professional advisor.”

Livingstone points out that there are benefits that organisations can access via MTD.

“Those organisations that presently only produce annual accounts typically have little time for tax planning, because they’re effectively analysing financial figures retrospectively by the time they get their tax return, whereas MTD allows them to tax plan throughout the year and to plan for payment of tax liabilities,” she said.

“It allows organisations to manage their finances better as they will have an up to date and accurate financial picture throughout the year and this will allow financial decisions to be made earlier.

“The adoption of digital technologies for various business admin functions enables processes and procedures to be undertaken far quicker and more efficiently than previously and the knock-on effect is huge efficiencies for businesses, giving some precious time back to business owners.”

For further information please contact Catherine Livingstone on 0141 566 7000.

Issued on behalf of Wbg by Liquorice Media tel 0141 332 4935 www.liquorice-media.com

Date: 24 Mar25