Making Tax digital securely

Making Tax Digital Securely: Protecting Your Data While Staying Compliant

Making Tax Digital (MTD) has transformed the way businesses and accountants manage tax. Returns are now submitted directly to HMRC using approved digital software — faster, easier, and more accurate. But with every digital advantage comes new risks. Financial data, once stored in paper files, now lives in the cloud. That’s why making tax digital securely isn’t just good practice — it’s essential.

What does “Making Tax Digital securely” mean?

It means meeting HMRC’s MTD requirements while also keeping sensitive business data safe from cyber threats.

You’re handling:

Income and expense data
VAT and Corporation Tax submissions
Bank transactions

All of which can be targeted by scammers or compromised if your systems aren’t up to date.

The risks of not making tax digital securely

If your systems aren’t protected, you could face:

Data breaches exposing confidential client information
Malware or ransomware attacks that lock or steal financial records
Phishing scams pretending to be from HMRC
Regulatory breaches under GDPR if data isn’t handled securely

Even one weak password, outdated computer, or unencrypted file can put your firm and clients at risk.

How to go about making tax digital securely

1. Use MTD-compatible, secure software

Choose reputable software such as QuickBooks, Xero, or FreeAgent. These platforms are built for making tax digital securely, offering encrypted connections and direct HMRC links.

2. Keep systems updated

Outdated operating systems or browsers are common vulnerabilities. Regularly install updates for Windows, macOS, browsers, and accounting apps.

3. Enable multi-factor authentication (MFA)

MFA adds another security step beyond a password — like a text code or authenticator app — significantly improving protection.

4. Secure passwords and access

Use strong, unique passwords for every user. Avoid sharing logins and ensure staff access only what they need.

5. Backup regularly and securely

Cloud-based backups ensure that even if a device fails or is attacked, your data is recoverable. Test backups occasionally to confirm they work.

6. Stay alert to scams

HMRC will never ask for login credentials, bank details, or payment via email. Always verify communications through official channels.

The benefits of making tax digital securely

Compliance confidence – meet MTD and data protection standards
Reduced risk – protect against cyber-attacks and data loss
Efficiency – smooth digital workflows and reduced paperwork

Final thoughts

Making Tax Digital securely isn’t just about meeting deadlines — it’s about safeguarding the foundation of your business.
By taking a security-first approach, you protect client data, maintain compliance, and build trust in your digital accounting systems.

If you’d like guidance on reviewing your systems or ensuring your MTD setup is fully secure, get in touch — I’ll be happy to help.

Helping you with Making Tax Digital securely

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New Business Start-up Checklist, or;
Business Plan Template, or;
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Achieving Success with your business

If you’re just starting your new business venture or struggling with the steps to the next level contact us now.

We can help you with this and much more

Get ready for success with Moore Financial Management

We can help you with all of your compliance obligations such as:

Self Assessment Tax
Making Tax Digital
Corporation Tax
Filing Accounts
VAT
Payroll and Pensions

But also the things you really need to increase the chances of your business being a success

Management Accounts
Cashflow Reporting & Forecasting
Budgets
Real Time up to the minute information

These are the things that add value and the information you need in order to make the correct business decisions

If you’re not confident with any of this or don’t have the time, getting a licensed accountant to do it for you can actually save you money. It can free up your valuable time which you can use to concentrate on your business. You can also benefit by knowing it has been done correctly and on time.

Mistakes can be costly.

As can missing deadlines.