Making Tax Digital (MTD)

Making Tax Digital (MTD) is the biggest change to tax compliance in a generation, but we can help make the transition as smooth as possible.

The basic requirements of MTD are that affected businesses and individuals must:

• Keep digital records,
• Use MTD compatible software, and
• Report information quarterly to HMRC.

For more details see our What is Making Tax Digital? article.

Making Tax Digital for VAT

VAT registered businesses have been required to use MTD for VAT since at least April 2022. If you need help with these obligations, please get in touch with your usual Saffery contact or speak to Sean McGinness.

Making Tax Digital for income tax

MTD for income tax (MTD ITSA) is being introduced in phases, starting from April 2026.

For the latest on MTD ITSA see the MTD for income tax – what you need to know article about the announcements made at the Autumn Statement 2023. You may also be interested in our response to HMRC’s December 2023 consultation on draft MTD ITSA legislation.

If you want to know how MTD ITSA will affect you or you’d like help preparing for the changes, please get in touch with your usual Saffery contact or speak to Alison Kerrey.

Making Tax Digital for corporation tax

MTD is expected to be extended to corporation tax after the rollout of MTD ITSA. We’ll provide more detail about the changes when they’re announced.