Making Tax Digital (MTD) is HMRC's initiative to modernize the tax system. Here's what your business needs to know about compliance requirements.
What is Making Tax Digital?
MTD requires businesses to keep digital records and submit returns using compatible software.
Current Requirements
- VAT-registered businesses with turnover above £85,000 - Quarterly VAT return submissions via MTD-compatible software
Future Rollouts
- Income Tax Self Assessment (from April 2026) - Corporation Tax (timeline to be confirmed)
Choosing Software
HMRC maintains a list of approved software providers. Key features to look for: - Integration with your existing systems - Automatic calculations and submissions - Regular updates to maintain compliance
Getting Ready
Start preparing now by: 1. Digitizing your records 2. Selecting appropriate software 3. Training your team 4. Testing your processes
Our team can help you navigate the MTD transition smoothly and ensure full compliance.