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VAT · 2 min · 28 August 2025

Making Tax Digital for small businesses: a Lancashire guide

MTD is not an app. It is a digital link from software to HMRC. Here is what that means if you are still on a spreadsheet.

C+Countplus AccountingCountplus Accounting, Nelson & Warrington
A closed laptop linked by a cable to a clipped stack of receipts

Making Tax Digital is HMRC’s way of saying: stop typing numbers from a spreadsheet into a website. For VAT-registered businesses that is already the law. For Income Tax, the timetable has moved more than once, which is why you should build the habit now, not the week a letter arrives.

What ‘digital link’ actually means

It does not mean ‘I own a laptop’. It means the figures on the return travel from recognised software to HMRC without being retyped. A photo of a notebook is not a digital link. Xero, FreeAgent, Sage and QuickBooks are. That is why we treat software as the service, not a logo in the footer.

If you are VAT-registered today

You should already be filing through software. If your ‘system’ is a folder of PDFs and a brave afternoon on the Government Gateway, you are one inspection away from a conversation you will not enjoy. We will put you on a proper stack and file the next return from it.

If you are not VAT-registered yet

Watch the rolling 12-month turnover. The threshold moves. Crossing it without software is how people have a bad first quarter. We watch it with you.

What we set up

Bank feed, chart of accounts, VAT scheme, user access, and a named person who looks at the books. MTD is then a button, which is what it always should have been.

This article is general information, not personal tax advice. Talk to us before you act on it.

Countplus Accounting, since 2019

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