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25 February 2026
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11 min
In this video, Liz Barclay and Eriona discuss the Making Tax Digital scheme, a UK government initiative that requires businesses to manage their taxes online. They address the concerns of small and micro-businesses, which include apprehension about using new technology, potential penalties for errors, increased frequency of tax payments, and the associated costs. Eriona acknowledges that these concerns are valid, particularly the worry about increased costs due to the need for more frequent interaction with accountants and the purchase of new software. Eriona advises businesses to consult with their accountants for guidance and to check their eligibility for the scheme. She also suggests looking at the list of government-approved Making Tax Digital software on the Gov website. Some of these are free, while others come with a cost. She differentiates between software that connects directly to HMRC and bridging software, which acts as a temporary solution for businesses transitioning to digital tax management. Eriona recommends that businesses should aim to establish proper processes from the start, even if it seems costly, as it will be beneficial in the long run.
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