Making Tax Digital

Making Tax Digital is a new government initiative designed to make the tax system more effective and efficient, and make it easier for taxpayers to get their tax right.

You can find out more information about this on the government website here

Making Tax Digital on Computer Software

Making Tax Digital for VAT

If you have a taxable turnover above the VAT threshold (£85,000) then you will now be required to follow the Making Tax Digital rules by keeping digital records and submitting VAT returns through software. 

If you have a taxable turnover below the VAT threshold then you will be required to follow the Making Tax Digital rules from your first return starting on or after April 2022. 

Making Tax Digital for Income Tax

Starting on 6th April 2024 MTD ITSA (Income Tax Self-Assessment) will be mandatory for the self-employed and those with income from property. However, it will only apply to those with turnover from self-employment plus gross rental income above £10,000. 

From 6th April 2025 MTD ITSA will be mandatory for general partnerships (not limited liability partnerships) with a turnover above £10,000. 

Coins in jar
MTD Making Tax Digital Computer Software

How we can help

Making Tax Digital (MTD) is about keeping digital records and submitting information to HMRC electronically through software. 

If you are comfortable with processing the digital records yourself, we can assist with getting you set up with the correct software and guiding you through the process.

Alternatively, we can process the digital records for you through our bookkeeping service, and submit the required information to HMRC on your behalf. Leaving you more time to concentrate on your business.

For more information, please contact us and we will be happy to help.