A leading Shropshire accountancy firm says the introduction of a new tax reporting regime for small traders and landlords will put bookkeeping under more pressure than ever before.
Helen Columb, of Telford-based Turas, says poor record keeping will be exposed by the switch to digital records when the Making Tax Digital (MTD) regime starts in April.
MTD represents one of the biggest changes to the UK tax system in a generation, requiring the self-employed and landlords to keep digital records and submit quarterly updates to HMRC using approved software.
Helen says many business owners still underestimate how dramatically quarterly digital reporting will change HMRC’s visibility of their finances and that poor or inconsistent bookkeeping will become far harder to hide.
“The new system will give HMRC near real‑time insight into income patterns, making sloppy record‑keeping a serious risk. MTD isn’t just a new way of filing tax returns, it’s a new level of scrutiny.
“Quarterly reporting means HMRC will see your numbers far more frequently and any inconsistencies, gaps or unusual patterns will stand out immediately. Businesses that have been ‘making do’ with messy books will find that much harder under MTD.”
Under the new rules, anyone with qualifying income over £50,000 will be required to join MTD for Income Tax from this April, with thresholds dropping to £30,000 in 2027 and £20,000 in 2028.
Helen says the biggest risk is complacency.
“If your bookkeeping isn’t up to scratch, now is the time to fix it. Burying your head in the sand and hoping you can do it all later is a recipe for trouble.”
Turas Accountants is advising businesses to:
- Move to MTD‑compatible software as early as possible
- Keep digital records consistently throughout the year
- Avoid relying on estimates or retrospective data entry
- Seek support now if their bookkeeping is behind or disorganised
Helen added: “Good bookkeeping has always mattered, but under MTD it becomes essential. The businesses that prepare early will have a smooth transition. Those that don’t could face penalties, stress and unwelcome attention from HMRC.”
Turas, which is based in Hall Court in Telford Town Centre, started trading in 2013 as Columb & Gosling Accountants. It changed its name to Turas Accountants six years ago under Helen’s leadership.