Making Tax Digital: The Easy Way to Save Time & Avoid HMRC Fines

Making Tax Digital: The Easy Way to Save Time & Avoid HMRC Fines

Running an agency is demanding enough without HMRC making things even more complicated. But the truth is, Making Tax Digital (MTD) isn’t just another rule to follow—it’s an opportunity to streamline your finances and save time.

If you’re still managing your agency’s accounts with spreadsheets, messy receipts, or manual invoices, now’s the time to upgrade and make your life easier.

Here’s the deal:

• MTD is already mandatory for VAT-registered businesses earning over £90K.
• From 2026, self-employed agency owners earning £50K+ will have to report their income digitally.
• Soon, limited companies will need to comply too.

But don’t panic. This guide will show you exactly what to do, which software to use, and how to avoid last-minute stress (or worse, HMRC fines).

Why Should You Care?

• HMRC will fine you for late or incorrect tax filings under MTD.
• Manual tax filing wastes time you could spend on clients & growth.
• The right MTD software will automate tax filing, expenses & VAT.
• Switching now means no stress when deadlines hit.

Let’s break this down into simple, action-focused steps so you can ditch the tax stress and get back to growing your agency.

Step 1: Stop Wasting Time – Get MTD Software Now

MTD means no more spreadsheets, no more last-minute tax panic. Your agency needs software that tracks income, expenses, and VAT automatically—so you don’t have to.

Best Software for Agencies

Not sure which one to pick? The best choice depends on your agency’s size, revenue, and whether you’re VAT-registered. But the key is: get one NOW before HMRC forces you to.

Step 2: Train Your Team (So You Don’t Have to Fix Their Mistakes)

If your team is involved in invoicing, expenses, or payroll, they need to know how MTD works—or you’ll be stuck cleaning up their mistakes later.

How to Make Training Simple

• Appoint a "Tax Champion" → One team member to oversee this (not you!).
• Use free software training → Most MTD-compliant tools offer step-by-step guides.
• Quarterly finance check-ins → Keep your books clean before tax season hits.

The easier this is for your team, the less they’ll ask you about tax stuff.

Step 3: Automate Everything & Ditch the Admin Work

Manual tax filing is the ultimate time-waster. Instead of spending hours tracking receipts, let software do it for you.

• Digitise invoices & receipts – Apps like Dext or Hubdoc scan and store them automatically.
• Automate tax calculations – Let software handle VAT, tax deductions & reporting.
• Set up quarterly tax check-ins – Avoid last-minute filing panic.

Bonus: With real-time tracking, you’ll know exactly how much tax you owe—no more nasty surprises at year-end.

Step 4: Don’t Get Fined – Stay on Top of Deadlines

HMRC isn’t messing around with MTD. If you don’t comply, you WILL be fined.

Key Deadlines

📅 Already in effect: VAT-registered agencies must be MTD-compliant.
📅 April 2026: Self-employed agency owners earning £50K+ must switch to MTD.
📅 2027 (expected): Limited companies likely to be included.

Ignoring this isn’t an option. Get ahead now and avoid the last-minute scramble.

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Make Tax Digital Work for You, Not Against You

If you run an agency, you’re too busy to waste time on manual tax filing. MTD is coming, but instead of fighting it, use it to your advantage.

• Pick MTD-compliant software NOW → It will save you hours of admin.
• Train your team so they can handle tax without you micromanaging.
• Automate everything so you never have to stress about tax deadlines again.
• Stay informed so you don’t get hit with fines when rules change.

Need help picking the right MTD software or setting up your agency’s tax process? 

Book a consultation with Sidekick Accounting today.

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