Making Tax Digital (MTD) is a key part of HMRC’s plan to simplify and transform the tax system. MTD affects how businesses in the UK maintain their accounting and tax records.
Businesses such are required to submit their VAT returns to HMRC by using MTD compliant software. In April 2020, the MTD scheme was extended to individuals and landlords. From April 2024, self-employed businesses and landlords with business turnover above £10,000 were due to report under MTD for Income Tax, but this measure has been delayed.
From April 2025 general partnerships will join MTD and from April 2024 companies can start using an MTD for Corporation Tax (CT) pilot scheme and from April 2026 companies join MTD for CT.
With the MTD reform changing the way all businesses report their financial details, tax Return Adviser Ltd are here to assist them in the following ways:
What Tax Return Adviser can do for you
We can advise you on how to keep accounting and records digitally and file you VAT and other tax returns to HMRC through MTD software.
Also, our team can assist you ascertain whether existing software is MTD compatible and train you to use the most appropriate online applications required.
Further, we can assist you in moving your business accounting records into a digital space, and if required, provide you with bookkeeping services and MTD submissions on your behalf.
We can even assist you in your claim for exemption for MTD, either due to a disability, religious grounds, the remoteness of the location, age, etc.
Benefits of Making Tax Digital
Using online MTD software has major advantages over the conventional ways of bookkeeping. You can:
- Generate estimates and deliver invoices from mobile devices.
- Look at a clear picture of your current financial position in real-time.
- Make a quick estimation of your tax liability.
- Get full control of your accounting records with a far more secure record-keeping system.
- Cut down accounting mistakes with the help of recommended HMRC software for financial reporting.
Further Reading
Get ready for Making Tax Digital for Income Tax
If you’re one of the (un)lucky individuals who need to join Making Tax Digital for Income Tax (MTD IT) from 6 April 2026, you probably know that this involves submitting regular, digital records to HMRC. But what do you need to do to prepare?
When will you have to register your new business for MTD?
The timetable for mandatory use of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) by existing businesses is well established. But when must you use MTD ITSA if you start a new business or create a new income stream?
Introducing Making Tax Digital For Income Tax Self Assessment (MTD ITSA)
The move to MTD ITSA involves many changes regarding digital record keeping, plus new reporting and admin requirements for all businesses to which it applies. This month's focus guides you through what to expect from MTD ITSA and how to tackle the issues it will throw up.
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