making tax digital
HMRC’s Making Tax Digital (MTD) initiative is modernising UK tax processes for businesses. By simplifying tax compliance, MTD reduces errors and the associated costs and stress.
After launching MTD for VAT in 2019, regulations now extend to all VAT-registered businesses, including those under the VAT threshold as of April 1, 2022.
The next phase targets income tax: from April 2026, unincorporated traders and property landlords with gross income over £50,000 will submit quarterly returns, with the threshold lowering to £30,000 in April 2027. The timeline for partnerships remains unconfirmed, but HMRC is running a pilot scheme.
Corporate tax will also transition to MTD, with a mandate date yet to be established. A pilot is expected, though no start date has been announced.
how we can help
Compliant Accounting Software Recommendations: We recommend accounting software that meets Making Tax Digital (MTD) requirements, such as Xero or FreeAgent.
Maintaining Accurate Digital Records: We offer advice on how to keep accurate digital records to stay compliant with MTD regulations.
Training and Resources: We provide training sessions and resources to ensure your business understands and meets MTD obligations.
Ongoing Compliance Reviews: We regularly review your practices to ensure continued compliance with MTD regulations.​