Making Tax Digital

This section contains details of Making Tax Digital (MTD) for VAT, income tax and corporation tax.

MTD for VAT is relatively well-established, with all VAT-registered business being mandated from April 2022 (or earlier) and MTD being the only portal through which returns can be filed since November 2022. Businesses are now automatically signed up to MTD when they register for VAT, though some businesses who are not able to interact digitally can make a request to HMRC for exemption from MTD. Businesses must obtain MTD compatible software to submit VAT returns and keep digital records from the date of VAT registration.

The implementation for MTD for income tax has taken longer. From a planned 2018 start, and after numerous deferrals, MTD will now be mandated for income tax for those self-employed traders and landlords with gross income over £50,000 in April 2026, reducing to £30,000 in 2027. Whether MTD will be mandated for incomes below £30,000 will be kept under review.

No date has been set for the extension to general partnerships, or to Corporation Tax.