Making Tax Digital (MTD) is a UK government initiative aimed at streamlining tax processes through digitalisation. It requires businesses to maintain digital records and submit tax returns via HMRC-approved software.
As of April 2022, all VAT-registered businesses must comply with MTD for VAT, regardless of their turnover. The next phase, MTD for Income Tax Self Assessment (MTD for ITSA), is expected to take effect in April 2026.
You must follow MTD guidelines if you:
Non-compliance may lead to penalties, so it’s crucial to ensure your systems meet HMRC’s requirements.
Reduces Errors: Automates calculations and submissions, minimising mistakes.
Saves Time: No manual paperwork- faster, more efficient tax filing.
Enhances Compliance: Ensures you meet HMRC requirements seamlessly.
Improves Financial Insights: Real-time reporting helps with better decision-making.
Choose HMRC-Approved Software – Platforms like Xero, QuickBooks, and Sage are fully compatible.
Maintain Digital Records – Store invoices, receipts, and other tax data digitally.
Submit VAT Returns Online – File your returns directly through your software.
Prepare for MTD for ITSA – If self-employed, start planning for upcoming digital requirements.
At Chandler & Partners, we provide expert digital services tax guidance, ensuring your transition to MTD is smooth and stress-free. Need help with Making Tax Digital for VAT or tax digitalisation? Contact us today for a consultation!
Making Tax Digital isn’t just about compliance – it’s about efficiency. Benefits include:
Fewer tax errors – Reduce mistakes from manual record-keeping.
Time-saving automation – Less admin, more time to grow your business.
Real-time tax insights – Stay on top of your finances with instant data access.
We provide expert digital services tax guidance to help businesses navigate MTD with ease.
To comply with Making Tax Digital for VAT, you’ll need:
MTD-compliant accounting software to keep digital records and submit returns.
A clear understanding of VAT rules and deadlines to avoid penalties.
Support from a professional accountant (like us!) to help with a smooth transition.
At Chandler & Partners, we guide businesses through MTD tax digitalisation, ensuring you stay compliant with minimal hassle.
Making Tax Digital (MTD) is a UK government initiative designed to make tax compliance easier and more efficient. It requires businesses to keep digital records and submit tax returns online using MTD-compatible software.
If your business is VAT-registered with a taxable turnover above £85,000, MTD for VAT is already mandatory. Even if you’re below the threshold, signing up for MTD can streamline your tax process and reduce errors.
