Making Tax Digital

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC’s plan to make tax simpler and more accurate. It requires businesses and individuals to keep digital records and submit their tax information using approved software, rather than paper forms.

This means you can:

Keep your accounts up to date more easily
Submit tax returns faster and more accurately
Have a clear view of your finances at any time

MTD is designed to make managing your tax less stressful and help your business stay compliant.

MTD at a Glance

VAT

MTD for VAT is already mandatory for all VAT-registered businesses

Income Tax

MTD for Income Tax Self-Assessment (MTD ITSA) will begin in April 2026 for self-employed individuals and landlords with income over £50,000

Corporation Tax

MTD for Corporation Tax is planned, though no official start date has been confirmed

Purpose

The initiative is designed to reduce errors, streamline tax administration, and provide businesses and individuals with a clearer view of their finances

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MTD for Income Tax Self-Assessment (MTD ITSA)

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is HMRC’s initiative to modernise how self-employed individuals and landlords manage their taxes. It requires keeping digital records and submitting tax information using compatible accounting software, rather than paper forms. The rollout begins in April 2026 for those with income above £50,000, extends to individuals earning over £30,000 in April 2027, and by the third year will include those with income above £20,000. HMRC will not provide software for quarterly reporting, so we have partnered with market-leading software providers to make managing your accounting records simple, wherever you are.

At SK Accountants, we are assisting clients with the implementation of these digital systems. Digital transformation is at the core of our agenda, and we recognise that many clients face challenges in starting this process due to limited knowledge or resources. Our experience allows us to offer a comprehensive package that ensures a smooth and successful digital transformation tailored to your business.

If you would like help navigating these changes, call us today or contact us online to arrange a free initial consultation. We are here to guide you through MTD ITSA and make sure your business is fully prepared for the digital future.