I can file my own MTD Return, can’t I – isn’t it just clicking a button?
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Making Tax Digital (MTD) is changing the way many individuals and businesses report their income to HMRC. With more banking apps and accounting software now offering the ability to submit returns at the click of a button, it can be tempting to think, "How hard can it be?"
The reality is that filing an MTD return is far more significant than simply pressing "Submit."
An MTD Return Is an Official Tax Submission
Every MTD update you send to HMRC forms part of your official tax record. Although quarterly updates are not the same as the final tax return, they are still official submissions that HMRC uses to build a picture of your income and business activity.
Incorrect figures, missing information, wrong allocations or misunderstandings about what should be included can create unnecessary complications later in the tax year. It is important to remember that these submissions are not simply reports generated by whatever app you use – they are part of your legal tax reporting obligations, building a tax profile at HMRC.
Software Can Process Numbers – It Can't Apply Professional Judgement
Modern apps are excellent at recording transactions, but they don't understand the full story behind your finances.
A professional accountant doesn't just look at the numbers. They understand:
- which expenses are genuinely allowable
- what adjustments need to be made before figures are submitted
- how changes in tax legislation affect you
- when income should (or should not) be reported
- how different sources of income interact with each other
Software follows rules. Experienced accountants apply judgement to build a full picture of your tax profile and how different approaches will ultimately reduce your tax bill.
Don't Miss Valuable Tax Savings
One of the biggest risks of preparing your own MTD submissions is overlooking legitimate tax reliefs.
An accountant will help ensure you claim everything you are entitled to, whether that's allowable business expenses, capital allowances, loss relief, pension contributions or other available tax benefits.
Many people focus on the cost of using an accountant, but often the tax savings and peace of mind more than outweigh the professional fees. Using an accountant isn't just another cost – it is an investment which enables you to grow your business.
Make Sure You Understand What You're Filing
One of the dangers of automated software is that it can encourage users simply to accept whatever figures appear on the screen.
Before anything is submitted to HMRC, you should understand:
- what the figures represent
- how they have been calculated
- whether anything is missing
- whether the submission accurately reflects your business
Just making the submission with figures you don't fully understand can lead to costly mistakes.
Quarterly Reporting Could Lead to Quarterly Tax Payments
At present, Making Tax Digital primarily changes how information is reported to HMRC. However, there has long been discussion about whether more frequent reporting could eventually lead to more frequent tax payments. While this has not been introduced, many professionals believe it remains a possibility for the future.
If tax payments do become more regular, having an accountant who monitors your finances throughout the year will help you budget effectively and avoid unexpected tax bills, as well as ensuring the returns made to HMRC are 100% correct.
Remove the Stress and Save Time
Most business owners didn't start their business because they enjoy tax administration. Preparing records, checking transactions, understanding tax rules and meeting filing deadlines all take valuable time – time that could be spent serving customers or growing your business.
Using a professional accountant means you can concentrate on running your business while knowing your tax affairs are being handled correctly.
A good accountant isn't just someone who submits forms. They become a trusted adviser who can help you:
- plan for future tax liabilities
- improve cash flow
- identify tax planning opportunities
- answer questions before problems arise
- keep you compliant with changing legislation
- provide support if HMRC ever raises an enquiry
- help your business grow more profitably
Having a professional alongside you means you're not facing important financial decisions alone – it's a partnership in successfully building your business.
Peace of Mind Is Worth More Than a Button
Technology has made tax reporting easier in many ways, and that's a positive development. But easier doesn't always mean simpler. Submitting an MTD return isn't just about moving numbers from your bank account to HMRC. It's about ensuring those numbers are complete, accurate and tax-efficient.
The best software in the world can't replace experience, professional judgement and tailored advice. If you're going to submit information that could affect your tax bill, it's worth making sure it's right the first time.
At MPower we believe in partnering with our clients to ensure that they get the maximum benefit from every decision that they make. From purchases, new initiatives and cost control to making tax returns – we will really make a difference to your business.
