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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.
You’ll need to be aware of the MTD rules if you:
To help businesses adjust to the changes, the new rules are launching in stages for different types of tax return.
The new Making Tax Digital legislation comes into force in stages depending on the type of tax return it relates to. Our table below shows the planned schedule for MTD.
Expected Date for MTD | Type of Tax Return |
April 2022 | MTD for VAT: MTD legislation is mandatory for all VAT registered businesses submitting their VAT return. |
April 2026 | MTD for Income Tax Self Assessment (ITSA): Expected to roll-out to sole traders and landlords with earnings above a certain threshold, MTD ITSA will replace annual Self Assessment tax returns. |
To Be Confirmed | MTD for Corporation Tax: The anticipated start date for submitting Company Tax Returns under MTD rules has not yet been confirmed. |
You’ll need to keep your accounting records digitally, and submit your tax information to HMRC using special software (like Pandle!). 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.
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:
Don’t ignore MTD until it becomes compulsory! Talk to one of the team about our online accounting services, including help with your tax return. Call 020 3355 4047 or get an instant online quote.
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It is unlikely you will need this service, unless you are voluntarily registered for VAT.
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Call us on 020 3355 4047 if you’re not sure.
You will receive our bookkeeping software Pandle for free, as part of your package.
You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.
Please select and option below:
Call us on 020 3355 4047 if you’re not sure.