Q: What are the benefits of MTD? A: MTD is more than just a compliance requirement, it also offers numerous advantages:
Q: As a landlord, do I need to set up a dedicated bank account? A: While not a legal requirement, a separate bank account for rental income and expenses is strongly recommended. A dedicated account:
We’re here to help With offices across East Anglia, and a dedicated outsourcing team we’re committed to helping businesses of all sizes to navigate MTD with confidence .
Improved accuracy through automated calculations.
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Simplifies digital recordkeeping
Our services include:
Real-time visibility of your financial position.
MTD-readiness assessments
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Helps segregate personal and business finances
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Software setup and training
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Reduced admin and paperwork.
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Makes quarterly updates under MTD more straightforward
Quarterly reporting support
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Fewer errors and missed deadlines.
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Ongoing compliance monitoring
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Reduces the risk of errors or omissions
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Better cash flow management.
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Strategic tax planning in a digital-first environment
All of which is especially helpful when using software that links directly to bank feeds, ensuring transactions are automatically imported and categorised. Q: Can I form a Partnership with a spouse to avoid MTD? A: At present, partnerships are not included within the MTD changes. Therefore, forming a partnership with a spouse might seem like a workaround to delay or avoid MTD obligations. But it’s important to understand:
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All of which allow you to make smarter financial decisions to support the ongoing growth of your business. Digital record-keeping also helps avoid the hassle of tracking down receipts or manually entering data. And for many of our clients, MTD has been a catalyst for modernising their financial systems. Q: How to prepare for Making Tax Digital? A: Here’s five practical steps you can take now to get prepared:
We’ve already helped numerous clients to transition to MTD with tailored support, training, and software recommendations so they’re ready well before the deadline. Because we see MTD not just as a regulatory change, but as an opportunity to enhance efficiency, strengthen client relationships, and future-proof your business. To find out more about what MTD really means for you, why not join us at Colchester Rugby Club on Tuesday 18 November at 7.30am for our Making Tax Digital for Income Tax Event . Or to discuss your MTD readiness in more detail, get in contact with one of our specialist tax team by calling 0330 058 6559 or email hello@scruttonbland.co.uk
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HMRC will eventually bring partnerships into MTD, though the start date is yet to be confirmed. Artificially restructuring ownership solely to avoid MTD could raise compliance concerns. Any partnership must be genuine, with shared responsibilities and profit entitlement.
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Assess your income to determine when you’ll be affected.
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Choose your MTD-compatible software and start using it early.
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Digitise your records and move away from spreadsheets or paper.
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Speak to your accountant to understand your obligations.
We’d always recommend seeking tailored advice before making any structural changes to your business. Q. Can’t I just use Excel? A. You can use Excel - but with caveats. HMRC allows the use of spreadsheets only if they are linked to bridging software that can:
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Train your team or get support to manage quarterly submissions.
Q: What happens if I don’t comply? A: HMRC will introduce penalties for non- compliance, including late submissions and failure to maintain digital records. While the exact penalty structure hasn’t yet been finalised, it’s clear that businesses who delay set up or don’t comply will risk fines and increased scrutiny.
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Maintain digital records
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Submit quarterly updates and final declarations
Graham Doubtfire Private Client Tax Partner graham.doubtfire@scruttonbland.co.uk 01206 417267
So this approach can be clunky and is open to errors. That’s why most people find that using MTD-compatible software (like Dext Solo or FreeAgent) is more efficient and less stressful in the long run.
PRIVATE CLIENT | SCRUTTON BLAND | 7
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