Making Tax Digital (MTD) is a UK government initiative that requires businesses to manage their tax affairs digitally by keeping digital records and using software to submit their VAT returns. MTD aims to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
Making Tax Digital was introduced back in April 2019 for all VAT registered businesses with a turnover above £85,000 and was extended to all VAT registered businesses from April 2022.
From April 2026 this will be widened to include self-employed individuals and landlords with income of more than £50,000. These individuals must keep digital records of their income and expenditure and send this information to HM Revenue & Customs every quarter as well as an end of year report.Those with an income between £30,000 and £50,000 will need to do this from April 2027.
We can work with you to prepare for these changes and guide you through your software options and the quarterly process. Or if you prefer, we can carry out the processing and submissions on your behalf.
We are a partner with the software provider Xero and are Xero advisor certified and can therefore offer support if you decide Xero is for you.
Make sure you’re prepared for what’s ahead by checking the key deadlines.
Making Tax Digital (MTD) was introduced back in April 2019 by the UK government for all VAT registered businesses with a turnover above £85,000.
Making Tax Digital requirements were extended to all VAT registered businesses, regardless of their turnover.
From April 2026 self-employed individuals, businesses, and landlords with annual income of more than £50,000 will need to start following the MTD rules.
From April 2027 those individuals, businesses, and landlords with annual income between £30,000 and £50,000 will also need to adopt the MTD rules.
