Making Tax Digital (MTD)

Change is coming for many taxpayers as HMRC rollout the next phases of Making Tax Digital (MTD). This is our dedicated MTD area which we will keep updated to support our clients, present and future, throughout the journey.

You will need to be prepared to change but we are committed to supporting you every step of the way to help you the find digital solution for you.

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MTD will see a more modern, streamlined way taxpayers will interact with HMRC. It will see the mandatory need to keep digital records and submit quarterly returns using MTD compliant software for many taxpayers.

HMRC originally announced that MTD would be extended to Income Tax Self Assessment (ITSA) with effect from April 2024 where an individual’s turnover exceeded £10,000.

However, in December 2022, it was announced that the introduction of MTD for ITSA was delayed until April 2026.

Only those with combined turnover from business and property income exceeding £50,000 are caught by these rules from April 2026 and those with income exceeding £30,000 are caught by April 2027.

An overview of the current timeline is below to help you plan for when you and your business need to be ready:

April 2019

April 2019 – VAT registered businesses with turnover over the VAT threshold, £85,000 join MTD for VAT.

April 2022

VAT registered businesses with a taxable turnover under the VAT threshold, £50,000 join MTD for VAT.

April 2026

Self-employed businesses and landlords with annual business and/or property income above £10,000 report under MTD for Income Tax.

April 2027

Self-employed businesses and landlords with annual business and/or property income above £30,000 report under MTD for Income Tax.

Relevant Insights

Blog

Making Tax Digital (MTD)

Friday, 16 August 2024

Chris Bale discusses the latest on the incoming Making Tax Digital regime. He highlights the dates, pitfalls and advantages as well as how we can help.

Blog

Thousands of farmers may soon find their tax affairs much more complicated in the shift towards Making Tax Digital

Wednesday, 28 July 2021

Alison Smith discusses the most recent announcement about the transition towards Making Tax Digital (MTD) and the likely additional complications (and extra tax charges) on the horizon for many farming businesses.

Blog

Making Tax Digital a little later than planned

Monday, 3 April 2023

Changes have been made to Making Tax Digital which will affect many more people who submit a self assessment tax return. Read our blog to see if you’re affected and when you need to comply.

Blog

Top ten tax planning points

Thursday, 24 March 2022

Nina suggests ten tax planning ideas you could consider, as tax year end approaches.

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