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?

  1. April 2022

    All VAT-registered businesses must follow Making Tax Digital rules.

  2. April 2024

    Making Tax Digital for Income Tax for self-employed business owners and landlords.

  3. April 2025

    Making Tax Digital for Income Tax for partnerships with individual partners.

  4. 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.

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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.

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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.

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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

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Expert Guide

MTD for VAT penalties

Find out what penalties you might face if you fail to comply with the new legislation.

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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.

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Expert Guide

Making Tax Digital jargon buster

Find out what some of the words and phrases from the MTD lexicon really mean.

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Accountant 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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