Use our information hub and FAQs to learn more about Making Tax Digital, and what it means for your business. Get free online resources for sole traders, limited companies, and VAT registered businesses dealing with MTD.
At the moment this is still in the consultation and design stage, and further information is unavailable.
It will come into effect from 6th April 2026 for sole traders and landlords whose annual turnover is more than £50,000. The threshold reduces to £30,000 from April 2027, and again to £20,000 from April 2028.
You can voluntarily follow the rules now, as long you’re a UK resident who is registered for Self Assessment. You must be a sole trader with income from only one business, or a landlord who only has UK property (or both!).
You’ll need to keep financial records like you normally would, showing all of your income and expenses from your self-employed or landlord business. These will need to be kept digitally, with software that’s compliant with MTD.
Once you start using MTD for Income Tax you’ll use this to send Income Tax updates to HMRC instead of submitting a Self Assessment tax return.
It stands for Making Tax Digital for VAT. It’s the name of the rules which require VAT-registered businesses to keep their financial records digitally and submit their VAT returns using MTD-compliant software.
VAT registered businesses with a taxable turnover above £85,000 were affected from the first VAT period starting on or after 1 April 2019. The scheme was extended on 1st April 2022 and now includes all VAT-registered businesses.
Yes, Making Tax Digital rules became compulsory for all VAT-registered businesses from April 2022.
There is indeed. Pandle allows you to track and manage your VAT, and submit your returns straight to HMRC, all for free.
No, eligibility rules for the various VAT schemes won’t change, and won’t affect your VAT return through MTD.
Taxable turnover means the same thing for MTD as for VAT registration. It’s the total value of everything you sell that is not exempt from VAT.
The MTD for VAT penalty system deals both with late payments and submissions as well as non-compliance. We explain the rules in our article about VAT penalties.
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Use our free online resources and guides to Making Tax Digital to get the help your business needs to stay compliant.
As an online accounting firm, we’re always available to provide accurate, reliable answers to frequently asked MTD questions.
Call 020 3355 4047 to talk to your accountant, or get an instant online quote to learn more about becoming a client.
All our clients have full access to refreshingly simple bookkeeping software, Pandle – for free! It’s easy to use, and fully MTD compliant, helping you to save time and reduce the risk of errors in your tax returns.
We charge a monthly fee based on your business type
