Making tax digital

Rolling with the changes.

It would be surprising if you hadn’t heard of Making Tax Digital (MTD) by now. Although it’s been spoken about a lot, it’s important to understand how the changes affect you and when the compliance deadlines fall.

We know all there is about the current and upcoming changes relating to MTD and how they will affect you and your business.

What is Making Tax Digital?

Making Tax Digital (MTD) is the latest way for you or your business to prepare your annual tax accounts and file them with HMRC. Not only that but you’ll be expected to pay your taxes through MTD-compatible software. 

MTD was introduced as a way to streamline and simplify the way workers in the UK pay their taxes.

MTD for businesses

VAT-registered businesses will already have to be filing and paying their VAT bills with HMRC through MTD-compatible software.

It doesn’t stop there though, as MTD for corporation tax is expected to roll out by 2026 at the earliest. So it pays to get ahead and acclimatise yourself to the new processes as soon as possible.

MTD for individuals

Self-employed individuals will soon have to start thinking of making the switch to MTD with the introduction of MTD for income tax self-assessment (MTD for ITSA) which is expected to be fully implemented by 2024.