When does Making Tax Digital (MTD) apply? What does MTD really mean? How will it affect you? 

This is a Freeview 'At a glance' guide to Making Tax Digital: Index & timeline

At a glance

Current timetable

Making Tax Digital (MTD) for VAT

  • From April 2022, all VAT registered businesses must retain digital records and submit their VAT returns to HMRC using 'functional compatible software', unless an exemption such as digital exclusion applies. 
  • Once in MTD for VAT, a business remains in MTD for VAT unless it Deregisters for VAT.

Our Making VAT Digital Zone contains guides and updates including a Making VAT Digital (MVD) subscriber guide.

MTD for Income Tax

MTD for Income Tax is the second phase of digitising tax record keeping. 

  • From April 2024: individuals can once again volunteer to participate in the MTD for Income Tax pilot program (Re-opened April 2024).
  • From April 2026: MTD for Income Tax will be mandated for self-employed businesses and landlords with turnover above £50,000.
  • From: April 2027: MTD for Income Tax will be mandated for self-employed businesses and landlords with business turnover above £30,000.
  • For businesses that commence on or after 6 April 2025, usually MTD will not start until 6 April following the tax year in which they commenced trading. (see Digital start date)
  • HMRC will review smaller businesses (with turnover of less than £30,000) to decide if they will be mandated to join MTD.
  • No timetable has yet been introduced for partnerships. 

MTD for Corporation Tax

  • HMRC have stated that MTD for corporation tax will not be mandated before April 2026.

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