MTD for VAT rules will apply to all VAT-registered businesses from Friday 1st April
From Friday 1st April 2022, all VAT-registered businesses will be required to follow MTD for VAT rules. Read more
Making Tax Digital - FreeAgent has you covered
Find out everything you need to know about Making Tax Digital, including whether the legislation applies to you, key deadlines and what you need to do to comply.
How FreeAgent can help Making Tax Digital explained
Accountant or bookkeeper? Visit our Making Tax Digital information hub for a range of resources.
What is Making Tax Digital?
Making Tax Digital (MTD) is the government’s initiative to implement a fully digital tax system in the UK, whereby taxpayers keep digital records and use MTD-compatible software to make tax submissions electronically.
When's it happening?
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April 2022
All VAT-registered businesses must follow Making Tax Digital rules.
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April 2024
Making Tax Digital for Income Tax for self-employed business owners and landlords.
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April 2025
Making Tax Digital for Income Tax for partnerships with individual partners.
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2026 onwards
HMRC will aim to introduce Making Tax Digital for Corporation Tax.
What do you need to do?
To comply with Making Tax Digital legislation, you need to use MTD-compatible software to keep digital records and make submissions to HMRC electronically.
What is Making Tax Digital for VAT?
MTD for VAT requires VAT-registered businesses with VATable sales above £85,000 to keep digital records and use MTD-compatible software to submit VAT returns electronically. In April 2022, these rules will be extended to include all VAT-registered businesses.
MTD for VAT with FreeAgent
FreeAgent’s MTD-compatible accounting software allows you to submit MTD VAT returns directly to HMRC. Just follow these simple steps.
Step one
Register
Register for Making Tax Digital for VAT on HMRC’s website and sign up to FreeAgent.
Step two
Connect
Connect your FreeAgent account to HMRC’s Making Tax Digital service.
Step three
File
Get your business’s accounts ready and file your first MTD VAT return.
FreeAgent is jargon-free, easy to use and MTD-compatible. Go solo or work with an accountant or bookkeeper for total peace of mind.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax, also known as ‘MTD for Income Tax Self Assessment’ or ‘MTD for ITSA’, will replace the current system of annual Self Assessment tax returns. MTD for Income Tax will come into effect in April 2024 for self-employed business owners and landlords and in April 2025 for partnerships with individual partners.
MTD for Income Tax with FreeAgent
Although you can’t sign up for MTD for Income Tax just yet, you can find out whether you’ll need to sign up in the future with our handy tool.
Do you need to register for Making Tax Digital for Income Tax?
Use this interactive tool to find out if you’ll need to sign up to submit Income Tax updates via accounting software.
Find out now
The latest Making Tax Digital news
Read more Making Tax Digital news on our blog
3 reasons to fall in love with digital record keeping
If your business is affected by the upcoming changes to MTD for VAT, there will soon be a new love in... Read more
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Guides to Making Tax Digital for small businesses
Expert Guide
MTD for Income Tax: what landlords need to know
Find out everything landlords need to know about Making Tax Digital (MTD) for Income Tax.
Read more
Expert Guide
Making Tax Digital: what does it mean for you?
Read our overview of the MTD initiative and discover how it will affect your business.
Read more
Expert Guide
Making Tax Digital: 8 common myths busted
Sort the fact from the fiction as we clear up eight of the most common myths about MTD
Read more
Expert Guide
MTD for VAT penalties
Find out what penalties you might face if you fail to comply with the new legislation.
Read more
Expert Guide
A guide to Making Tax Digital for Income Tax
Learn what's changing under MTD for Income Tax and find out what the new rules mean for you.
Read more
Expert Guide
Making Tax Digital jargon buster
Find out what some of the words and phrases from the MTD lexicon really mean.
Read moreAccountant or bookkeeper? Visit our Making Tax Digital information hub for a range of resources.
FreeAgent can help you prepare for Making Tax Digital
FreeAgent’s powerful automation features can help get your accounts in order for digital filing with minimal hassle. Check out all the other ways FreeAgent can help you stay on top of your business finances.
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