Making Tax Digital (MTD) is at the core of HMRC’s plan to become one of the most digitally advanced tax administrations in the world. First announced in March 2015, the plan is to simplify tax by replacing existing processes with digital record keeping, and submitting tax returns digitally throughout the year.
Do Making Tax Digital (MTD) rules affect me?
You’ll need to be aware of the MTD rules if you:
Are a VAT-registered business
Submit a Self Assessment tax return as a self-employed business or landlord
Pay Corporation Tax
To help businesses adjust to the changes, the new rules are launching in stages for different types of tax return.
When will MTD rules apply to me?
The new Making Tax Digital legislation comes into force in stages depending on the type of tax return, and will eventually apply to VAT, self-employed income, and Corporation Tax returns.
You’ll need to keep your accounting records digitally, and submit your tax information to HMRC using special software. You’ll either be able to submit directly from your record-keeping software, or will need to use bridging software to make the actual submission.
What are the benefits of Making Tax Digital?
The government believes that MTD will make life easier for businesses and HMRC, improving efficiency, and making it easier to comply. Other predicted benefits include:
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About The Author
I'm an experienced and fully AAT and ACCA qualified accountant, who is enthusiastic about helping business owners succeed. I also love cooking and needlepoint (at different times!). Learn more about Beth.