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Compliance Made Easy

What is Making Tax Digital?

Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. It essentially means the end of the annual tax return for millions of self-employed people and landlords.

Instead of a single annual filing, you'll need to use MTD-compatible software to keep digital records of your business income and expenses, and submit quarterly updates to HMRC.

  • Keep digital records
  • Use MTD-compatible software
  • Submit quarterly updates
  • Submit a final declaration annually

How TaxPlus helps

Seamless Digital Platform

Our portal is fully equipped to handle MTD record-keeping requirements.

Expert Oversight

We review and submit your quarterly updates to HMRC on your behalf.

Timeline

Key MTD Milestones

✓ Live

April 2019

MTD for VAT

VAT-registered businesses with a taxable turnover above £85,000 are required to keep digital records and submit VAT returns using MTD-compatible software.

⏳ Upcoming

April 2026

MTD for ITSA — Phase 1

Mandatory for self-employed individuals and landlords with annual business or property income above £50,000. Quarterly digital submissions to HMRC will replace the annual Self Assessment return.

📅 Planned

April 2027

MTD for ITSA — Phase 2

The income threshold lowers to £30,000, bringing a larger number of self-employed individuals and landlords into the MTD for ITSA requirements.

FAQ

Common Questions about MTD

Making Tax Digital is a UK government initiative that sets out a bold vision for a digital tax administration system. It requires businesses and individuals to keep digital records and use software to submit their tax returns, making the process more efficient and accurate.

From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will apply to self-employed individuals and landlords with an annual business or property income above £50,000. In April 2027, this threshold will lower to those with an income above £30,000.

To comply with MTD, you need to use compatible software (like the TaxPlus platform) to keep digital records of your business income and expenses. You will also need to send quarterly updates to HMRC and a final declaration at the end of the tax year, rather than a single annual Self Assessment tax return.

TaxPlus provides an MTD-compatible platform where you can easily keep digital records, manage invoices, and submit your quarterly updates seamlessly. Our expert accountants ensure your submissions are accurate and timely, taking the stress out of the new MTD requirements.

Ready to get your business MTD compliant?

Don't wait until the deadline. Book a free consultation with our experts to discuss how MTD affects you and how we can make the transition seamless.

Book a Free Consultation