By Simone Lyons
04 Aug 2026
Last updated: 03.08.2026
For many businesses and landlords, MTD has shifted from being a future consideration to a live reality.
In simple terms, Making Tax Digital changes the way tax information is managed and reported. Rather than pulling everything together at the end of the year, businesses and landlords now need to keep digital records and provide regular updates throughout the year.
Having spent the last year helping clients prepare for this change, one thing has become very clear: the businesses finding the transition easiest are not necessarily those with the most sophisticated technology.
In this article, we share how businesses are adapting to the changes successfully, key questions to be asking internally, a working example, the hidden opportunity MTD presents, FAQs and key takeaways.
One of the biggest misconceptions surrounding MTD is that compliance is simply a question of choosing the right software. We’re often asked, “which platform should we use?”, “Do we need a new system?”, “How much technology do we need to invest in?” But, in my experience, those aren’t always the most important questions.
In reality, the technology is often the easy part. The bigger challenge is ensuring that financial information is captured accurately, maintained consistently and made available when it’s needed. Businesses that continue to rely heavily on manual processes are often discovering that more frequent digital reporting places greater demands on record-keeping than the traditional annual tax return process.
That doesn’t mean every business needs to invest in a complex new accounting system. In fact, many of the most effective solutions I’ve seen have involved refining existing processes, rather than replacing them altogether.
The businesses adapting most successfully are often those that have taken a step back and looked at how information flows through their business, considering:
At Gerald Edelman, we’ve spent a significant amount of time helping clients identify the approach that works best for them. Some clients prefer a fully managed service where we handle the reporting requirements on their behalf, while others want to retain control and submit their own updates with support from us where needed. We’ve developed solutions to support both approaches and everything in between.
One thing I’ve learnt from working with clients on MTD is that the best solutions are often the simplest.
Many of our property clients used to collect managing agent statements at the end of the tax year when it was time to prepare their tax return. That approach worked perfectly well when reporting was an annual exercise, but it becomes much harder when information needs to be available on a more regular basis.
Rather than introducing complicated new systems, we’ve helped several clients make a simple change: their managing agents now send statements directly to us as they are issued.
As we work through the current reporting period ahead of the 7 August deadline, we already have access to the information we need throughout the quarter, rather than gathering everything in one go at the end. It means fewer last-minute requests, better quality records and a much smoother reporting process for everyone involved.
Whilst MTD is ultimately a compliance requirement, I believe it also presents an opportunity.
Businesses that maintain accurate records throughout the quarter often gain a much clearer picture of their financial position. Rather than waiting until after the year end to understand how the business has performed, they can make decisions quarter by quarter, using current information.
We’re also finding that access to real-time information creates opportunities for more proactive tax planning. Instead of reviewing figures months after the event, conversations can take place while there is still time to act.
Whether that’s forecasting future tax liabilities, planning for cashflow, considering pension contributions or making use of available tax reliefs, better information often leads to better decisions.
In my experience, the most valuable conversations with clients happen when we can look ahead rather than backwards. Real-time records make that far easier to achieve.
If your business is still heavily reliant on manual processes, now is the time to review whether those processes remain fit for purpose.
The answers to those questions will often highlight where improvements can be made.
Importantly, the solution doesn’t always need to be complex. Sometimes a small change to how information is captured, shared or reviewed can have a significant impact.
Possibly. But many businesses actually benefit more from better processes than from new technology.
No. Making Tax Digital changes how information is reported to HMRC, not how your tax is calculated or when it is due. However, having better and more up-to-date information can help identify planning opportunities and avoid surprises later in the year.
In many cases, yes. The important point is that records are maintained digitally and that any reporting requirements can be met correctly. For some clients, spreadsheets remain part of the solution, whilst others find dedicated software more efficient. We have a variety of options to suit each client need.
Potentially, yes. Many landlords assume MTD is aimed at larger businesses, but many property owners have been mandated. The key is understanding whether your income levels bring you within the reporting requirements and making sure your record-keeping processes are ready. If your rental income reported on your tax return for 2024/25 was over £50,000 (2025/26- £30,000) you will most likely need to comply with quarterly reporting.
Better visibility. Clients who maintain records throughout the quarter have a much clearer picture of their finances, giving them more opportunities for proactive tax planning and helping them avoid last-minute surprises.
As we approach the first filing deadline on 7 August, the conversations I’m having with clients are changing. The focus is no longer on whether Making Tax Digital is coming, but how businesses can make it work in practice.
Making Tax Digital is undoubtedly a compliance requirement, but I believe it also presents an opportunity. Better record-keeping doesn’t just make compliance easier – it creates opportunities for more proactive tax planning, better financial visibility and more informed decision-making throughout the year.
If you are unsure whether your current processes are ready for Making Tax Digital, we can help you review what is working, identify any gaps and put a practical reporting approach in place before deadlines become a pressure point. To set up an initial consultation, get in touch with a member of our tax team, or email us at hello@geraldedelman.com today.
73 Cornhill London EC3V 3QQ
Contact Us
