Making Tax Digital for Income Tax: What Small Business Owners in Cheshire Need to Know
If you run your own business, the chances are that tax admin is not the reason you got into it. Whether you are a sole trader juggling clients, a landlord managing properties, or a one-person operation keeping all the plates spinning, HMRC’s Making Tax Digital programme is about to add something new to your plate — and the clock is already ticking.
Here is what is changing, why it matters and how to make sure you are not caught out.
“I don’t really know what Making Tax Digital means for me”
You are not alone. Making Tax Digital for Income Tax (MTD for IT) is the government’s plan to move the tax system online and in real time. The first phase is already live, and the key deadlines are closer than many people realise.
From April 2026, sole traders and landlords with an annual income above £50,000 will be legally required to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. From April 2027, the same rules apply to those earning above £30,000.
That means instead of one Self Assessment return per year, you will be submitting five pieces of information annually — four quarterly updates plus a final year-end declaration.
At Butlers, we have been helping small business owners across Cheshire understand exactly what MTD means for their specific situation. A straightforward conversation is often all it takes to cut through the confusion.
“I haven’t got time to learn a whole new system”
This is probably the most common concern we hear. You are already running a business. The last thing you need is to spend hours getting to grips with new software, new submission schedules and new HMRC requirements.
The good news is that you do not have to figure it out on your own. Butlers will handle the setup of your digital records using MTD-compatible, HMRC-recognised software, and manage your quarterly submissions on your behalf. You get on with running your business. We handle the detail.
As Xero Gold Partners, we are well placed to get you set up quickly and simply, with software that is genuinely straightforward to use day to day.
“I’m worried about missing a deadline and getting a penalty”
Under the new system, missing a quarterly submission is not just an inconvenience — it can trigger penalty points that accumulate over time and eventually result in a fine. For busy business owners already stretched thin, that is a real risk.
Butlers will keep track of every submission deadline on your behalf and make sure nothing slips through the net. We also send regular updates to clients about changes to tax rules and government schemes, so you will always know what is coming before it arrives.
“I’m not sure whether I need to do anything yet”
If your income is currently below the thresholds, you may feel like this does not apply to you right now. But the thresholds will continue to come down over time, and getting ahead of the changes is always easier than scrambling to catch up when a deadline is looming.
It is also worth bearing in mind that setting up proper digital record-keeping now has benefits beyond MTD compliance. Better records mean a clearer picture of how your business is performing, which makes conversations about growth, tax planning and cashflow far more productive.
If you are not sure where you stand, a quick chat with the team at Butlers will give you a clear answer with no jargon and no pressure.
Ready to get ahead of Making Tax Digital?
Butlers is a family accountancy practice based in Cheshire, and we have been supporting small business owners since 2008. We are ICAEW members and Xero Gold Partners, and we pride ourselves on being the kind of accountants who are actually easy to talk to.
If Making Tax Digital is on your mind, get in touch. We will take the complexity off your hands so you can focus on what you do best.
Call Laura on 07815 295504 or get in touch here.