Making Tax Digital
Making Tax Digital (MTD) for VAT
- From April 2022, all VAT registeredbusinesses 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 Deregistersfor 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 pilotprogram (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/business (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.
