FreeAgent, the Edinburgh-headquartered accounting software company, has enabled a UK small business to make history by filing the world’s first tax submission from space.

It was made as part of a pilot scheme testing the next phase of the UK Government’s “Making Tax Digital” (MTD) legislation, which is soon to be mandated.

The Scots firm facilitated the submission for England-based singer, violinist, and music teacher Jennifer Maslin, which involved a digital tax update being made from her FreeAgent account more than 26km above the Earth’s surface.

From a launch site in Sheffield, FreeAgent and aeronautics firm Sent into Space sent a high-altitude balloon and tablet computer to a height of more than 26,000m, before submitting the tax update to HMRC via the software, and while connected to a secure satellite connection.

The filing marks the highest altitude that a tax submission has been filed, and was made under the UK’s new Making Tax Digital for Income Tax framework, which will be mandated from next April.

The legislation will require all self-employed individuals and landlords earning more than £50,000 per year to keep digital financial records, and make quarterly updates to HMRC to report their tax affairs.

Filing the first tax submission in space was done to demonstrate “how digital technology is breaking down barriers, making tax filing simpler and more accessible than ever before,” amid new research that suggests many UK small businesses are struggling to understand and adapt to the new MTD rules.

For instance, 21% of senior decision makers at UK SMEs said they don’t fully understand the next stage of Making Tax Digital, while 31% said they feared MTD could create additional pressure for them when it comes to managing their tax affairs.

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Commenting on achieving the first tax submission in space, Jennifer Maslin said: “It’s still a bit surreal to think that my taxes have been submitted to HMRC from the edge of space.

“Seeing the footage from that high up and watching the tech all coming together to make it happen was amazing!

“It’s great to know that I’ll be ready and well-supported when Making Tax Digital for Income Tax properly comes into effect next year. If I can make a tax update from space, it should be a breeze to do it from my laptop on the ground!”

Meanwhile, Craig Ogilvie, HMRC’s Making Tax Digital director, said: “Making Tax Digital for Income Tax is a transformative change that will improve tax collection and support small business productivity.

“One of the best ways self-employed or those with property income can prepare is by joining the testing phase now.

“Signing up early means they can get familiar with the new system, with exclusive access to our dedicated Customer Support Team, ensuring a smooth transition when they are mandated.

“We are committed to supporting businesses every step of the way with detailed guidance available on GOV.UK.”