Making Tax Digital (MTD) accountants

HMRC’s Making Tax Digital (MTD) plans continue to reshape how individuals, landlords and businesses manage their tax affairs. Our specialist tax and accounting experts are here to navigate these changes and ensure compliance with the latest requirements.  

What is MTD?

MTD is HMRC’s initiative to become one of the most digitally advanced tax administrations in the world. It aims to improve tax administration by: 

• Encouraging digital record-keeping 
• Reducing manual data entry 
• Minimising human error 
• Supporting taxpayer compliance

MTD timeline and updates

MTD for VAT

Introduced in April 2019, MTD for VAT was the first phase of the MTD journey and is now mandatory for most VAT-registered businesses  

Making Tax Digital for Income Tax (MTD for IT)

Making Tax Digital for Income Tax (MTD for IT) will be phased in from April 2026. 

Those affected will need to maintain digital records and submit quarterly updates of their income and expenditure to HMRC using a MTD-compatible software. After the final quarter you will be required to submit a final yearly declaration. This will replace the traditional Self-Assessment tax return. 

April 2026 – Phase 1 of MTD for IT

Individuals and landlords with gross income greater than £50,000.  This excludes income from employment, dividends, pensions, or partnerships. 

April 2027 – Phase 2 of MTD for IT

Individuals and landlords with gross income between £30,000 and £50,000. 

Date to be confirmed – remaining phases

Partnerships together with Individuals and landlords with gross income less than £30,000 will be phased in but the date is yet to be confirmed. MTD exemptions will be possible for those who qualify under specific criteria. 

We have provided a 3-step guide in preparation for MTD for IT here

If you’re unsure whether MTD applies to you or if you would like help getting started with digital software, please get in touch. We are here to support you every step of the way.

HMRC confirms cancellation of Making Tax Digital for Corporation Tax (MTD for CT)

HMRC has officially withdrawn its plans to implement MTD for Corporation Tax, which had previously been anticipated to follow the rollout of MTD for Income Tax.

While MTD for CT is no longer going ahead, HMRC remains committed to digital transformation and will continue to explore alternative ways to modernise Corporation Tax administration.

Need help going digital?

If you haven’t made the move to digital accounting, we can help you; 

• Recommend and set up your MTD-compliant software 
• Automate bank feeds and reconciliations 
• Submit invoices and access real-time insights 

Stay informed

We’re here to support you through every phase of MTD.   you would like to find out more about Making Tax Digital or if there is anything else we can help you with, please don’t hesitate to get in touch with our team.