HMRC is enforcing a mandatory "Digital Link" requirement from April 2026. A single Excel adjustment breaks it — and the penalties land per entity, per quarter, before you know they're coming.
HMRC Penalty — Broken Digital Link
per entity · per quarter · from April 2026
Using MTD-approved software is not the same as maintaining a compliant Digital Link. HMRC audits the data journey — not just the destination.
If a client's bookkeeper pastes figures from a report into Excel before uploading to QuickBooks, you have a broken link — even if you never touched that file yourself.
Penalties under Schedule 55 Finance Act 2009 apply from the first non-compliant submission. There is no grace period for firms who "meant to fix it."
A fixed-scope, rapid audit. We map every data touchpoint across your client base, identify where Digital Links are broken, and produce a written remediation plan before the deadline.
We trace the complete path of tax data for a sample of 5–10 client files — from source system to HMRC submission — documenting every handoff point.
Days 1–2Every identified handoff is tested against HMRC's Digital Link definition (Notice 700/22). Manual steps, copy-paste points, and Excel adjustments are flagged and documented.
Days 2–4You receive a risk-rated written report: every broken link identified, the specific compliance risk it creates, and a prioritised remediation recommendation for each one.
Day 5We don't sell software, IT services, or accounting packages. We do one thing: find and fix the Digital Link breaks that HMRC will target in 2026.
Our audit is built on HMRC Notice 700/22, Schedule 55 FA 2009, and the MTD ITSA regulations — not marketing materials. We cite chapter and verse.
No open-ended engagements. The Gap Analysis is a defined deliverable completed in 5 working days — designed to fit into your schedule before March closes.
A documented audit trail demonstrating due diligence significantly strengthens your professional indemnity position if HMRC investigates a client.
Once the audit methodology is established for your firm, it can be extended across your entire client portfolio — or white-labelled as a client-facing service.
Leave your email and we'll send a one-page overview of the audit scope, the HMRC guidance references, and availability for a 20-minute scoping call.
No sales sequence. No obligation. One document, one conversation.