MTD
Making Tax Digital
Making Tax Digital (MTD) is a UK government initiative aimed at transforming tax administration to be more effective, efficient, and easier for taxpayers. Launched by HMRC, MTD mandates the digitalization of tax records and the submission of tax returns using compatible software.
Key Dates:
April 2019: MTD became mandatory for VAT-registered businesses with taxable turnover above the VAT threshold.
April 2022: MTD for VAT extended to all VAT-registered businesses, regardless of turnover.
April 2024: MTD for Income Tax Self-Assessment (ITSA) will be introduced for self-employed businesses and landlords with annual business or property income above £10,000.
HMRC Compliance:
Businesses must maintain digital records of all transactions.
Tax returns must be submitted through HMRC-approved software.
Quarterly updates and an end-of-period statement (EOPS) are required for ITSA.
By adhering to MTD, businesses can ensure compliance with HMRC regulations, reduce errors, and streamline their tax processes. Stay ahead with digital tools and resources tailored for seamless MTD integration.