Are you ready for Making Tax Digital (MTD)? Not all software is MTD compatible and if you currently use manual records, you will need to move over to compliant software!

Making Tax Digital (MTD) is a key part of the government's plans to modernise the UK tax system, with the aim of making it easier for individuals and businesses to get their tax right and manage their affairs more efficiently. 

Making Tax Digital for VAT

  • All VAT-registered businesses are required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.
  • VAT registered businesses are no longer be able to use their existing VAT online account to submit their VAT returns.
  • If you are already using cloud accounting, then the impact of MTD will be minimal, as many cloud solutions such as Xero software are MTD compliant. If you are unsure whether your current software is compatible or you still rely on manual records, we urge you to seek advice now.

You may be wondering about MTD for other taxes such as income tax and corporation tax. The latest information is that MDT for Income Tax Self Assessment will become law on 6 April 2026 for the self-employed and those with income from property above £50,000. Those with an income of between £30,000 and up to £50,000 will be mandated from April 2027. MTD for Corporation Tax will not start until at least April 2026. 

Even though MTD may not apply to you right now, our advice is to plan ahead. Whatever your line of business, our team are here to help you become MTD compliant!

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Sarah Van Ristell

Sarah Van Ristell

Email Sarah

024 7671 5111

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