Making Tax Digital (MTD)

Making Tax Digital (MTD) is part of the government's plan to make it easier for businesses to stay on top of their day-to-day accounts, improving efficiency, accuracy and ease of compliance.

Embracing Digital Taxation

MTD is the beginning of the end for paper-based accounting for millions of business owners and the self-employed. From April 2019, businesses above the VAT threshold are required to set up a digital tax account and file quarterly returns online. The government believes a digital tax system is the right decision, however the implementation and timeline is still being considered.

Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts, improving efficiency, accuracy and ease of compliance.

MTD is the beginning of the end for paper-based accounting for millions of business owners and the self-employed.

From April 2019, businesses above the VAT threshold are required to set up a digital tax account and file quarterly returns online. The government believes a digital tax system is the right decision, however the implementation and timeline is still being considered.

What MTD means to you

We are advising our clients start to prepare now, as more and more businesses migrate to the cloud to improve their efficiency, boost profitability and remain compliant. As it stands:

Digital VAT

Only VAT registered businesses will need to keep digital records and only for VAT purposes.

Start Date

They will only need to do so from April 2019.

Record Timeline

Businesses will not be asked to keep digital records, or update HMRC quarterly for other taxes until at least April 2020 (originally, this was April 2019).

Cloud Migration

Any business can begin to migrate to the cloud now to benefit from cloud accounting technology so we would encourage you to consider your options and have a plan in place.