What is Making Tax Digital (MTD)?

MTD

Tax might not be the most exciting part of running a business — but it’s a necessary one. And with the government’s Making Tax Digital (MTD) initiative, the way businesses manage and report their tax is changing.

If the thought of new systems or expensive accounting software makes you nervous, don’t worry - you’re not alone.

The good news? MTD doesn’t mean you have to give up your trusted spreadsheets or change the way you like to work and suiteSheets is here to support and ensure you can move forward with clarity and confidence.

Let’s break it down.

What is MTD?

MTD is a government initiative designed to move the UK’s tax system into the digital age. In simple terms, it means businesses will need to:

  • Keep digital records of income and expenses, and

  • Submit tax information electronically to HMRC quarterly through compatible technology.

It’s already in place for VAT-registered businesses, and it’s gradually expanding to capture all business types - see our MTD timeline for the upcoming highlights.

Why is MTD being introduced?

There are a few reasons behind it — and they’re not all bad news!

  1. Reducing errors – HMRC estimates billions of pounds are lost each year due to simple mistakes on tax returns. Digital record-keeping aims to cut that down.

  2. More accurate, up-to-date data – Submitting tax information more regularly gives both businesses and HMRC a clearer picture of what’s going on financially.

  3. Helping you stay organised – By keeping your records digital, you’re less likely to forget deadlines or scramble at year-end.

In theory, MTD should make tax easier, not harder. The challenge comes when people assume it means switching to complicated software.

What does MTD mean for your business?

If you’re VAT-registered or earning over 50K, you’ll need to follow MTD rules. That means keeping records in a digital format and filing returns through compatible technology.

But you don’t have to abandon your spreadsheets.

You can still keep your records in Google Sheets using the suiteSheets template to connect your data to HMRC’s systems.

suiteSheets makes it easy to stay compliant with MTD while continuing to work the way you like — in your own spreadsheets, with your own data, and without paying for a full-blown accounting package you’ll never use.

 MTD is here to stay, but it doesn’t have to be complicated. With the right setup, you can:

  • Keep using your spreadsheets

  • Stay in full control of your data

  • Meet HMRC’s MTD requirements with minimal fuss

At suiteSheets, we keep MTD simple — no jargon, no pricey software, no stress.  

What are your biggest concerns when it comes to MTD?  Share your thoughts and opinions below.

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