Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

Making Tax Digital Support Centre

Use our information hub and FAQs to learn more about Making Tax Digital, and what it means for your business. Get free online resources for sole traders, limited companies, and VAT registered businesses dealing with MTD.

MTD for VAT

Check that your business is compliant with Making Tax Digital for VAT rules, and when changes came into effect and what changes you need to make to ensure your business stays compliant.

Income Tax and MTD

Plan ahead and get your business ready for the rollout of Making Tax Digital for Income Tax on 6th April 2023 for self-employed businesses or landlords earning more than £10,000.

MTD for Corporation Tax

Prepare your limited company and stay up to date with plans for Making Tax Digital for Corporation Tax which is currently planned to come into force in 2026.

FAQs

MTD Corporation Tax

When does MTD for Corporation Tax start?

At the moment this is still in the consultation and design stage. The current expectation is that this will come into force for limited companies from 2026.

MTD for Income Tax

When does MTD for Income Tax become compulsory?

It will come into effect from 6th April 2023 for sole traders and landlords earning more than £10,000.

Can I register for Income Tax MTD early?

You can voluntarily follow the rules now, as long you’re a UK resident who is registered for Self Assessment. You must be a sole trader with income from only one business, or a landlord who only has UK property (or both!).

What records do I need to keep?

You’ll need to keep financial records like you normally would, showing all of your income and expenses from your self-employed or landlord business. These will need to be kept digitally, with software that’s compliant with MTD.

Will I still need to submit Self Assessment tax returns?

Once you start using MTD for Income Tax you’ll use this to send Income Tax updates to HMRC instead of submitting a Self Assessment tax return.

MTD for VAT

What does MTD for VAT mean?

It stands for Making Tax Digital for VAT. It’s the name of the rules which require VAT registered businesses to keep their financial records digitally and submit their VAT returns using software which is compliant.

When did MTD for VAT start?

VAT registered businesses with a taxable turnover above £85,000 were affected from the first VAT period starting on or after 1 April 2019.

When does MTD for VAT become compulsory?

It’s already a requirement for VAT registered businesses with a taxable turnover more than £85,000. It will be compulsory for all VAT registered businesses from the first VAT period starting on or after 1st April 2022.

Is there any free MTD for VAT software?

There is indeed. Pandle allows you to track and manage your VAT, and submit your returns straight to HMRC, all for free.

Does it matter which VAT scheme I use?

No, eligibility rules for the various VAT schemes won’t change, and won’t affect your VAT return through MTD.

What does taxable turnover for MTD mean?

Taxable turnover means the same thing for MTD as for VAT registration. It’s the total value of everything you sell that is not exempt from VAT.

Articles

The Temporary VAT Rate Cut – Reduction Now Extended

Read our updated guide to the extended temporary VAT reduction rate for the UK hospitality and tourism industry Understand the temporary VAT…

Read More

VAT Reverse Charge for the Construction Industry Launches 1st March

On the 1st March this year, the UK VAT ‘reverse charge’ will apply to VAT-registered businesses in the Construction Industry Scheme (CIS)….

Read More

Should I Voluntarily Register for VAT Early?

Businesses selling goods and services which are subject to VAT must register for VAT when their turnover reaches the registration threshold. But for…

Read More
Load more...

Get help with MTD

Use our free online resources and guides to Making Tax Digital to get the help your business needs to stay compliant.

As an online accounting firm, we’re always available to provide accurate, reliable answers to frequently asked MTD questions.

Call 020 3355 4047 to talk to your accountant, or get an instant quote online to learn more about becoming a client.

Free MTD software

All our clients have full access to refreshingly simple bookkeeping software, Pandle – for free! It’s easy to use, and fully MTD compliant, helping you to save time and reduce the risk of errors in your tax returns.

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.