Making Tax Digital: The quiet before the August storm
For years, Making Tax Digital for Income Tax (MTD ITSA) has felt like a distant policy, talked about endlessly, delayed repeatedly, and easy for businesses to ignore. But that era is over. MTD is now live for sole traders and landlords earning over £50,000, and the first major milestone is already looming: the 7 August quarterly update deadline.
Right now, the accounting world is experiencing a strange calm. Clients are aware something has changed, but many haven’t yet felt the pressure. Software is being adopted, but not always correctly. HMRC has begun sending letters, but the real urgency hasn’t hit. That will change, fast. The August deadline is the first real test of whether businesses are ready for digital record‑keeping, digital links, and quarterly submissions. And for many, it will be a wake‑up call.
The transition to MTD is happening quietly, but the impact will be loud.
The rollout of MTD ITSA has been softer than expected. There was no big launch moment, no dramatic shift overnight. Instead, businesses are slowly discovering:
They must keep digital records
They must use compatible software
They must submit quarterly updates
They must maintain digital links
They must be ready months before the year‑end
This “soft landing” has created a false sense of security. Many clients assume MTD will be simple, or that their accountant will “just handle it”. Others have signed up for software without understanding how to use it. Some are still hoping for another delay. But the reality is clear, MTD is here, and the deadlines are real.
The August quarterly update: the first real pressure point.
The first quarterly update is due 7 August, covering the period from April to June. This is where the calm ends. The update itself is not complicated, it’s a digital summary of income and expenses. But the process behind it is where businesses will struggle:
Are digital records complete?
Is the software set up correctly?
Are bank feeds working?
Are digital links in place?
Has the client actually kept up with bookkeeping?
For accountants, this is where the workload spikes. For clients, this is where the reality of quarterly reporting becomes unavoidable.
Why so many businesses will feel overwhelmed?
MTD isn’t just a tax change, it’s a behavioural change. Businesses must now:
Keep records continuously
Stay organised throughout the year
Use software consistently
Provide information earlier
Engage with their accountant more frequently
For clients who already struggle with deadlines, paperwork, or digital tools, this is a major shift; and for accountants, the challenge is managing hundreds of clients who all need support at the same time.
How DS Business Support is helping clients stay ahead
At DS Business Support, we’ve been preparing for this moment long before the April launch. We know that MTD isn’t just about compliance, it’s about creating systems that actually work for real businesses. Here’s how we’re supporting clients through the transition:
1. Software setup and digital record‑keeping. We help clients choose the right software, set it up properly, and ensure bank feeds, categories, and digital links are working from day one.
2. Ongoing bookkeeping support For clients who don’t have time to maintain digital records, we offer full bookkeeping services to keep everything up to date, so quarterly submissions are stress‑free.
3. Quarterly submission management. We handle the entire submission process, ensuring everything is accurate, compliant, and filed on time.
4. Client education and training. We provide clear, practical guidance on what clients need to do, when they need to do it, and how to avoid penalties or last‑minute panic.
5. Workflow planning and deadline management. We segment clients by risk, readiness, and digital capability — allowing us to prioritise support and avoid bottlenecks as deadlines approach.
In short: We make MTD manageable, predictable, and far less stressful.
What businesses should be doing now
With the August deadline approaching, businesses should:
Confirm they are signed up for MTD
Ensure their software is MTD‑compatible
Check that bookkeeping is up to date
Speak to their accountant about quarterly submissions
Avoid waiting until July to start preparing
The earlier the preparation, the smoother the transition.
The storm is coming, but it doesn’t have to be chaotic. Right now, things feel calm. But as August approaches, thousands of businesses will suddenly realise they’re not ready. Software issues, missing records, and last‑minute panics will become common, but with the right support, MTD doesn’t have to be overwhelming. DS Business Support is already helping clients prepare, organise, and stay ahead, so when the August storm arrives, they’re not caught in the chaos. If your business needs help navigating MTD, setting up software, or managing quarterly submissions, now is the time to act.