19 April 2024

QuickZeros Guide to Making Tax Digital 2025 | MTD Explained

The adoption of digital tax platforms is significantly altering financial management practices across the UK.
In 2025, major changes will make it essential to go tax digital and stay compliant with new HMRC requirements. At QuickZeros, we’re here to guide you through every step with the right MTD software and expert support.

What Is Tax Digital?

TD is a programme launched by HMRC to update and modernise the UK’s tax infrastructure. Instead of submitting annual tax returns manually, businesses and individuals now need to use digital tools to keep records and submit updates online. The aim? A faster, more accurate, and efficient tax process.

According to mtd.gov.uk, all VAT-registered businesses must already comply, and from April 2026, most self-employed businesses and landlords earning over £50,000 will also need to follow MTD rules for Income Tax Self Assessment (ITSA).

What’s Changing in 2025?

2025 is the preparation year. Although the major Income Tax changes take effect in 2026, the government is urging businesses to switch early to making tax digital software to ensure a smooth transition.

Here’s what you need to do in 2025:

• Consult your accountant or advisor: Ensure you’re following best practices before the 2026 rollout.
• Start using digital record-keeping: Spreadsheets won’t cut it. You need approved MTD software that connects directly to HMRC.
• Understand your deadlines: You’ll eventually send quarterly updates instead of one annual return.
• Register for MTD via the MTD gov UK portal.

Important MTD Dates You Can’t Miss

Key Deadlines for VAT and Income Tax

• April 2025: MTD mandatory for all VAT-registered businesses.
• April 2026: MTD ITSA begins for landlords and sole traders earning £50k+.
• April 2027: May be extended to cover individuals earning above £30,000.

What to Expect in 2026 and Beyond

The rollout of MTD for Corporation Tax is expected in the coming months. Stay updated via mtd.gov.uk to avoid surprises.

Benefits of Going Tax Digital

Using MTD software like QuickZeros or other approved providers can streamline your business in many ways:

• Better financial planning: Quarterly updates make budgeting easier
• Real-time tax overview: No more end-of-year surprises.
• Less paperwork: Everything stored and submitted digitally.
• Fewer errors: Reduce mistakes through automation.

Choosing the Right MTD Software

There are many MTD-compatible software options available. When choosing yours, look for:

• HMRC approval (check on mtd.gov.uk)
• Easy-to-use dashboards and features
• Integration with your accounting system
• Responsive customer support

At QuickZeros, we offer user-friendly MTD software designed to help small businesses, freelancers, and landlords stay compliant with minimal fuss.

How QuickZeros Helps with Making Tax Digital

We’re not just another software provider we’re your digital tax partner. Our MTD solution offers:

1. Digital VAT Returns in Minutes

With QuickZeros, submitting VAT returns is as easy as a few clicks just review and file.

2. Real-Time Record Keeping

Our dashboard updates automatically with every invoice, purchase, or transaction you enter.

3. Smart Automation Tools

Auto-fill fields, instant calculations, and AI-powered suggestions help eliminate human error.

Filing Your First MTD VAT Return with Ease

1. Walkthrough with QuickZeros Software

1. Connect your business bank account
2. Let QuickZeros auto-calculate your VAT
3. Preview your return
4. Submit directly to HMRC
5. Download your digital receipt

2. Common Mistakes and How to Avoid Them

• Unreconciled transactions
• QuickZeros flags issues before you file.
• Wrong VAT periods
• Missed invoices

Managing Your Digital Records

What HMRC Requires You to Keep

• Sales invoices
• Purchase records
• VAT calculations
• Bank statements

Secure Storage with MTD Software

Your data is safely encrypted, backed up, and stored in the cloud by QuickZeros.

Read More About: Best VAT Making Tax Digital Software for Easy Compliance

Final Thoughts

Making Tax Digital is here to stay, and 2025 is your year to get ahead of the game. Understanding the regulations, choosing the right MTD solution, and preparing in advance will ensure a confident and seamless switch in 2026.

Looking for a simple and effective way to go tax digital? Try QuickZeros today and take control of your digital tax journe