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?
All VAT-registered businesses must follow Making Tax Digital rules.
Making Tax Digital for Income Tax for self-employed business owners and landlords.
Making Tax Digital for Income Tax for partnerships with individual partners.
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 all VAT-registered businesses to keep digital records and use MTD-compatible software to submit VAT returns electronically.
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.
Register for Making Tax Digital for VAT on HMRC’s website and sign up to FreeAgent.
Connect your FreeAgent account to HMRC’s Making Tax Digital service.
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.
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.
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