Making Tax Digital (MTD) is HM Revenue and Customs’ initiative to modernise the UK tax system by requiring certain taxpayers to maintain digital records and submit information electronically.

MTD for Income Tax is being introduced in stages:

From April 2026 – Sole Traders and Landlords with qualifying income over £50,000

From April 2027 – Sole Traders and Landlords with qualifying income over £30,000

From April 2028 – Sole Traders and Landlords with qualifying income over £20,000

Qualifying income is generally based on gross self-employment and property income before expenses.

Yes. Excel can still be used to maintain digital records.

However, information must ultimately be submitted to HMRC using compatible software or bridging solutions where required.

Our bookkeeping models are designed to help you maintain accurate digital records and prepare for MTD requirements whilst continuing to benefit from the flexibility and familiarity of Excel.

No. The spreadsheet will generate the information required for your submission, but you’ll need to use compatible bridging software to submit the return to HMRC. This is typically free for VAT submissions and, for Income Tax, is usually available for a small annual fee and is simple to set up and use.

Not necessarily. Many businesses prefer to manage their records in Excel because it is flexible, familiar and cost-effective.

Our bookkeeping models provide many of the features found in bookkeeping software, including invoice generation, reporting, tax calculations and VAT functionality (selected models), whilst allowing you to continue working within Excel.

Each model includes:

• The Excel bookkeeping model
• User guidance
• Video demonstrations
• Instructions for getting started

Features vary by model. Please refer to the comparison table for full details.

The Annual Compliance & Update Plan provides a brand-new version of your Excel bookkeeping model for the next financial year, incorporating any legislative changes, enhancements and new features. It also includes updated video demonstrations and access to the latest version of the model.

No. The Annual Compliance & Update Plan is completely optional.

Your bookkeeping model can still be used to access and review historical data, but as each model is designed for a specific financial year, customers wishing to continue recording transactions in future years will require the latest version of the model, which is provided as part of the plan.

Yes, very limited email support is included to help you get started and answer occasional questions about using the model.

If you require additional assistance, training, bespoke changes or more in-depth support, these can be arranged separately for an additional fee.

Yes. One of the advantages of Excel is its flexibility.

If you require additional functionality, bespoke reports or modifications to suit your business, these can usually be accommodated for an additional fee.

No. Your bookkeeping data remains within your Excel file and under your control.

Unlike many cloud-based bookkeeping solutions, you retain ownership of your data and can access it whenever you need to.

Each licence is provided for use by a single business entity.

If you require models for multiple businesses or properties, please contact us to discuss bespoke tailoring options.

No. VAT functionality is included within ACE Complete, which also includes VAT Return preparation and MTD-compliant VAT reporting.

Our models combine real-world bookkeeping knowledge with over 18 years of Excel consultancy experience, providing practical, user-friendly solutions that help Sole Traders, Landlords and small businesses stay organised, save time and reduce errors.

As a Microsoft MVP with a background in accountancy and extensive experience developing Excel-based business solutions, Traci has designed these models to be practical, easy to use and focused on the needs of real businesses.

The result is a powerful, user-friendly solution designed to save time, reduce errors and help you stay organised.

Many businesses prefer Excel because it is familiar, flexible and gives them complete control over their data.

With no monthly subscription fees and powerful built-in reporting, Excel can provide a cost-effective alternative for businesses that want to maintain accurate records without paying for software they may never fully use.

We recommend Absolute Tax, as the template has been designed to work seamlessly with this software. If you use a different bridging solution, please get in touch – we’re happy to discuss adapting the template to suit your preferred software.

https://absoluteexcelincometaxfiler.co.uk/

Not at all. Even if you’re not yet required to comply with MTD, you can still use the software as normal. The HMRC submission files will simply be generated and can be ignored until they’re needed. In fact, starting early gives you time to become familiar with the process, making the transition to mandatory quarterly reporting much smoother.