But here’s the question that matters more.
Most owner-managers are thinking about MTD as a compliance headache. A few are using it as a reason to finally get clear on what their numbers are actually telling them. The difference is significant.
From April 2026, most self-employed businesses and landlords with income over £50,000 must keep digital records and submit quarterly updates to HMRC under Making Tax Digital. By April 2027, that threshold drops to £30,000. If you’re not already set up, the time to act is now.
But here’s the question I find myself asking clients once the compliance side is sorted: now that your records are current, are they actually telling you anything useful?
Most owner-managed businesses have numbers. What few have is clarity. The accounts arrive late, look backwards, and don’t feel connected to the decisions being made every day. There’s a real difference between having figures and understanding them.
The businesses I see growing most confidently are rarely the ones with the most sophisticated software. They’re the ones where the owner knows their real margin, understands which work is profitable and which isn’t, and has a sense of where they’re heading — not just where they’ve been.
If you’re updating your systems for MTD anyway, it’s worth asking three things: Do I know my real profit after paying myself properly? Do I know which parts of my business make money and which don’t? And is my accountant helping me think — or just filing?
MTD is a nudge toward better financial clarity. Use it as one.
Vijay Shah & Co, your local accountants delivering tailored services for your business needs. Call 07919 107037.
