The benefits of Making Tax Digital

Making Tax Digital supports HMRC’s plans to digitalise the tax system. It is intended to:

• make it easier for individuals and businesses to get their tax right

• mean customers can integrate tax management with a range of business processes through software

• contribute to wider productivity gains for businesses by encouraging digitalisation

Making Tax Digital for VAT

If you have a VAT registered business, you are now required to keep digital records and file your tax returns using compatible software.

Making Tax Digital for Income Tax

You need to follow the requirements for Making Tax Digital for Income Tax if you are self-employed or a landlord from:

• 6 April 2026 if you have an annual business or property income of more than £50,000

• April 2027 if you have an annual business or property income of more than £30,000

Many important details about the requirements of MTD for Income Tax remain unclear and many queries exist.  If you have any doubts, seek advice.