Making Tax Digital
What is MTD?
MTD is a government initiative announced by George Osborne in 2015 to modernise the UKs Tax System for the Digital Age!
2025 UPDATE
VIDEO: Getting ready for Making Tax Digital for Income Tax
Making Tax Digital (MTD)
MTD IT is a major change to the way UK businesses will manage
and report their taxes to HMRC.
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 Income Tax
If you’re self-employed or a landlord with rental income exceeding £30,000, You will soon need to submit quarterly updates as well through MTD ITSA. The rollout for this is scheduled for April 2026
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. However there are big changes coming to the way Companies house monitor and approve company directors and accounts due to new powers and changes to UK Company Law since May 2024.
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...
The idea of having one central hub for all government services has major benefits including increasing efficiency and reducing fraud, but in order for it work you first need to create an account for every person living in the UK and make the internet accessible through out the entire UK.
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.
The Personal Tax Account
Every taxpayer and business in the UK have been provided with a digital tax account.
How will MTD IT Affect you?
The Requirements for MTD include using software and more frequent reporting...
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 single Self Assessment 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 Submissions
You’ll still need to finalize your accounts at the end of the year, but the process will be streamlined through digital tools.
Increased Transparency
With regular updates, you’ll have a clearer picture of your tax obligations throughout the year, reducing the risk of surprises at year-end.
The road to MTD is constantly changing and evolving so we are regularly evaluating the software market and are even developing our own software to support these changes.
As certified ProAdvisor's for Intuit Quickbooks, we also provide advice, training and discounts in the worlds leading accounting software.
We are also actively looking for sole traders and landlords who are interested in signing up for the MTD for IT beta in 2025. If thats you, why not give us a call today!
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.
