What is MTD?
The modernisation of the UKs Tax System for the Digital Age!
It replaces the annual Self Assessment return with quarterly updates and an end of year Final Declaration
When does it apply to you?
FROM APRIL 2026
If your combined Turnover exceeds £50,000 per year
FROM APRIL 2027
If your combined Turnover exceeds £30,000 per year
FROM APRIL 2028
If your combined Turnover exceeds £20,000 per year
If your self-employed with combined Turnover from self-employment and/or rental income as a landlord the rules are mandated for you...
Turnover refers to the total income received from your self-employment or rental income before any deductions of costs or expenses.
How will IT Affect you?
The requirements for MTD include using software and more frequent reporting...
VIDEO: Getting ready for Making Tax Digital for Income Tax
Digital Record-Keeping
If you’re used to keeping paper records or spreadsheets, you’ll need to switch to MTD-compatible software to maintain your records digitally.
Quarterly Reporting
Instead of filing a Tax Return once a year, you’ll submit four quarterly updates to HMRC. These updates provide a snapshot of your income and expenses throughout the year.
End of year submission
You’ll need to finalize your accounts to calculate and ay your tax at the end of the year, but the process will be streamlined through a single end of year declaration.
The Personal Tax Account
Every taxpayer and business in the UK have been provided with a digital tax account.
Government Gateway
The government gateway is the hub of all the government services, including HMRC, The Department of Work and Pensions, Companies House, the DVLA and more...
Individuals can log into their personal tax account to view their national insurance records, state pension status and much more. Every business; whether a sole trader, partnership or limited company, has a business tax account to handle PAYE, VAT, and other taxes.
These accounts are intended to be secure ways for HMRC to communicate with taxpaying individuals and businesses, helping crack down on phishing emails and scams.
Our Goal
We are tackling the challenges impacting businesses across the UK by providing advice and training to help prepare them for Making Tax Digital.
For those needing extra help, we have introduced exclusive digital bookkeeping services to handle all your MTD requirements.
As certified ProAdvisor's for Intuit Quickbooks, we provide advice, training and exclusive discounts.
HISTORY OF MTD
A look back at its introduction and plans for the future
Making Tax digital is the biggest change to the tax system in over 30 years! Announced in 2015 by George Osborne as part of an initiative to digitise the UK economy.
MTD for VAT
Rolled out in April 2019, MTD for VAT introduced digital reporting for VAT returns, replacing the traditional filing method. The decision to tackle VAT first was mainly due to the fact VAT was also reported quarterly, resulting in a much smoother transition for businesses already VAT registered.
MTD for VAT has largely been a success and has since dropped the MTD section of its name. Businesses can now register online for VAT and submit VAT returns digitally via HMRC compatible software.
MTD for Income Tax
MTD for Income tax officially launched on 06 April 2026. Due to the high impact on sole traders, HMRC decided to handle this with a staged rollout.
Initial reports indicate that around 125,000 sole traders have been contacted about joining MTD in 2026 with a further 1.2 million expected to join in 2027.
MTD for Partnerships
HMRC is still consulting on how MTD will be implemented for Partnerships and we will update this guide when more information becomes available.
MTD for Corporation Tax
Currently there is no plans for implementing MTD for Corporation Tax. Instead the changes to UK Company Law since May 2024 are being implemented throughout the Companies house website.
New ID Verifications and the introduction of GOV.UK One Login will see companies required to file through commercial software as they migrate away from the older web-filing service.