Making Tax Digital (MTD) is a UK government initiative that aims to modernise the tax system by digitising the recording and submission of tax information. MTD aims to make tax administration more efficient, effective, and user-friendly.

Businesses and self-employed individuals must keep digital records of their income and expenses using software compatible with the HM Revenue & Customs (HMRC) system under MTD. They are then required to electronically submit their tax information on a quarterly basis.

MTD was initially implemented in April 2019 for businesses with a turnover greater than the VAT threshold (currently £85,000), and has since been expanded to include other businesses and self-employed individuals. All VAT-registered businesses will be required to submit their VAT returns through MTD beginning in April 2023.

BENEFITS OF MAKING TAX DIGITAL (MTD)

  • Improved Accuracy
  • Reduction in Administrative Burden
  • Great Visibility and Transparency
  • Faster processing times and quicker Tax Refund

HOW CAN WE HELP YOU?

  • We assist you in meeting HMRC requirements
  • We will simplify Tax Reporting for you
  • We reduce the risk of errors and potential errors in order to keep the company from incurring penalties.
  • We provide great visibility to your Tax Obligations
  • We offer ongoing support in order to make your business stay compliant with MTD regulations.

WHEN CAN I FILE TAX WITHOUT AFFECTING?

April 2019:

VAT registered businesses with a turnover of more than the VAT threshold (currently £85,000) had until April 2019 to register for Making Tax Digital for VAT. These businesses were required to keep digital VAT records and submit their VAT returns using MTD-compliant software under the new rules.

April 2022:

VAT-registered businesses with a taxable turnover of less than £85,000 will be required to comply with MTD for VAT rules for their first return due on or after April 2022.

April 2026: 

Self-employed businesses and landlords with annual business or property income of more than £50,000 will be required to follow the Making Tax Digital rules for Income Tax beginning April 6, 2026.

April 2027:

Self-employed businesses and landlords with annual business or property income of more than £30,000 will be required to follow the Making Tax Digital rules for Income Tax beginning on April 6, 2027.

Our MTD services are intended to make tax reporting more convenient, efficient, and accurate. We provide you with the support and guidance you need to comply with HMRC requirements and confidently manage your tax reporting.

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