Insights | Accounting, Income Tax, MTD, Stretford, Tax

What is Making Tax Digital (MTD)?

Making Tax Digital (MTD) is the Government’s implementation to move towards a fully digital UK Tax system.

Under MTD taxpayers must keep digital records and make tax submissions electronically using MTD-compatible software.

Below are key dates and valuable information:

Apr-22		Apr-26		Apr-27		Date TBC by HMRC
Making Tax Digital for VAT will apply to all VAT-registered businesses		Making Tax Digital for Income Tax will apply to all self-employed individuals including landlords with income over £50,000		Making Tax Digital for Income Tax will apply to all self-employed individuals and landlords with income over £30,000		HMRC have yet to finalise the start date. Making Tax Digital for Income Tax will also apply to partnerships

What steps do you need to take?

To comply with HMRC Making Tax Digital legislation, you need to use MTD-compatible software to keep digital records and to make submissions electronically to HMRC.

What is Making Tax Digital for VAT?

MTD for VAT requires all VAT-registered businesses (Limited companies/sole traders/partnerships) to keep digital records and to submit VAT returns electronically using MTD-compatible software.

Summary

Making Tax Digital doesn’t have to be complicated. Accounting Solutions Manchester can help you choose the right software, stay compliant with HMRC, and make digital record-keeping straightforward. Reduce tax, increase profit, and save time. Call us today on 0161 879 7175 for a free, no-obligation consultation.