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 for VAT
All VAT registered businesses are now required to follow the Making Tax Digital rules by keeping digital records and submitting VAT returns through software.
Making Tax Digital for Income Tax
Starting on 6th April 2026 MTD ITSA (Income Tax Self-Assessment) will be mandatory if all of the following apply:
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You are an individual
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You are registered for Self Assessment
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You were self-employed or collecting property income before 6 April 2025
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You have a qualifying income of more than £50,000
You must meet the MTD ITSA requirements from 6th April 2027 if all of the following apply:
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You are an individual
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You are registered for Self Assessment
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You were self-employed or collecting property income before 6 April 2026
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You have a qualifying income of more than £30,000
The dates for when partnerships need to sign up are due to be set out by HMRC at a later date.
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.
