Making Tax Digital (MTD) is the UK government’s revolutionary initiative to modernize the tax system. It mandates businesses and individuals to keep digital records and submit updates every quarter through MTD-compatible software. This shift aims to improve efficiency, reduce errors, and create a real-time tax environment.
MTD represents a significant change in how taxes are managed, affecting businesses of all sizes and individuals with income from self-employment or property.
By embracing digital record-keeping and reporting, MTD helps you stay on top of your tax obligations and ensures that your submissions are accurate and timely.
Key benefits of MTD include streamlined record-keeping, leading to fewer errors, greater efficiency, and a real-time understanding of your tax position.
Who is affected by Making Tax Digital?
MTD currently applies to VAT-registered businesses with a taxable turnover above the VAT threshold. It will gradually be expanded to include other types of taxes, such as income tax for self-employed individuals and landlords.