Making Tax Digital – HMRCs digitalisation strategy – is coming in over several years:
- Making Tax Digital for VAT – from April 2019
- Making Tax Digital for Income Tax – from April 2026
- Making Tax Digital for Corporation Tax – date as yet unspecified
These dates, and all the Making Tax Digital requirements, are mandatory for businesses and/or landlords
Making Tax Digital for VAT
MTD VAT came in for most VAT registered businesses from April 2019 – for businesses with voluntary VAT registration, the mandation date was April 2022.
The requirements are to:
- Keep your accounting records Digitally and have Digital Links within differing parts of your records
- Submit VAT returns via your software – desktop or app – connected to HMRC via API. You can no longer submit VAT returns via HMRC website or on paper.
Read more about Making Tax Digital for VAT
Making Tax Digital for Income Tax Self Assessment
MTD ITSA comes in from April 2026 for:
- Sole Traders and Partnerships
- Landlords
The introduction dates have been changed and deferred a number of times. Currently the staging is:
- From April 2026 landlords, sole traders and partnerships with turnover or rents of £50,000 or more
- From April 2027 landlords, sole traders and partnerships with turnover or rents of £30,000 or more
- In Autumn Budget 2024 Government committed to introducing MTD for ITSA for turnover or rent over £20,000 “before the end of this parliament” which means no later than summer 2029, so presumably April 2028 or April 2029, but not confirmed.
The key obligations are to:
- Keep Digital Records
- Submit Quarterly Interim Returns to HMRC digitally one month after quarter end
- Submit final returns to HMRC by 31 January after the end of the tax year
Read more about Making Tax Digital for Income Tax
Making Tax Digital for Corporation Tax
We don’t know anything about this yet, other than its an aspiration.
Position Statement on Prospective Fee and Service Changes for Making Tax Digital for Income Tax Self Assessment
In March 2022 we published a Position Statement on how Making Tax Digital for Income Tax may effect the services we offer, and our charges.
Making Tax Digital for Income Tax – Position Statement on Prospective Fee and Service Changes
This is for information and to give a direction of travel – nothing is yet finalised. However we are planing ahead for April 2026, to ensure we and our clients are prepared.
