Digital Tax Service · Guidance

How to Prepare for Making Tax Digital

Last reviewed: Next review: Reviewed by the Digital Tax Service editorial team

Step 1 — Confirm Your MTD Obligations

Use HMRC’s guidance or our eligibility check to confirm whether MTD applies to you and from what date.

Step 2 — Choose Your MTD Software

Pick from HMRC’s list of recognised software based on your business size and complexity.

Step 3 — Set Up Digital Record-Keeping

Migrate existing records into your chosen software and establish a routine for capturing income and expenses digitally from the point of transaction.

Step 4 — Register with HMRC

Complete MTD registration in your HMRC online account, authorising your software at the same time.

Step 5 — Prepare for Your First Quarterly Update

Diary your deadlines, set aside time before each, and run a dry-run of the submission process before the live deadline.

Common Preparation Mistakes

Leaving setup until the last minute, choosing software that doesn’t fit your business, and assuming the HMRC portal can still be used for submissions.

How Digital Tax Service Can Help

From eligibility check to first quarterly update, our service covers every step of MTD preparation.

Frequently Asked Questions

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