Making Tax Digital Bookkeeping Service

Making Tax Digital for Income Tax changes bookkeeping from a once-a-year job into an ongoing one. Instead of a single Self Assessment return, you must keep digital records throughout the year and send HMRC a summary of your income and expenses every quarter using compatible software. If your records slip behind, catching up before each quarterly deadline becomes stressful — and late updates can trigger HMRC penalty points.

A managed bookkeeping service removes that pressure. We keep your records current every month, so each quarterly update is simply reviewed and filed rather than rebuilt from a shoebox of receipts.

• Digital recording of all business income and expenses in MTD-compatible software
• Bank feed connection and monthly reconciliation so nothing is missed
• Expense categorisation to HMRC's income and expense categories
• Preparation and submission of your four quarterly updates
• Reminders ahead of every HMRC deadline
• A structured year-end handover pack for your final declaration or accountant

1. Set-up: we connect (or set up) your MTD software and a read-only bank feed.
2. Monthly: we record and categorise your transactions and reconcile the bank.
3. Quarterly: we review your figures with you, then submit the update to HMRC before the deadline.
4. Year end: we prepare your handover pack so the final declaration is straightforward.

For sole traders, we track business income and allowable expenses so your quarterly updates reflect the right taxable profit. For landlords, we keep separate records for each property, handle finance-cost restrictions correctly, and combine your rental figures where MTD requires a single submission. If you have both trading and property income, we keep the two streams separate as HMRC requires while giving you one clear picture.

MTD requires a digital audit trail from your source records to the figures you submit, with no manual re-typing between systems. We keep your records in HMRC-recognised software so your data flows digitally into each quarterly update, meeting the digital-links requirement automatically. If you prefer to keep using spreadsheets, we connect them to HMRC with approved bridging software.

At the end of each tax year we prepare a structured data export and summary for your accountant or tax adviser to complete your final declaration. Because the records are already clean and categorised, this reduces accountant time and keeps your costs down. If you would rather we handle the final declaration too, we can do that as well.

Call us on 0114 327 1480 or email shjenquiry@msc-g.com for a fixed monthly quote. Not sure whether MTD applies to you yet?

Check your MTD obligations →