MTD is reshaping how records are kept and returns are filed. Here is what practices need to have in hand.
Making Tax Digital (MTD) is HMRC's programme to move tax record-keeping and filing fully digital, with records kept in software and returns filed through digital links.
Where it stands
MTD for VAT already applies to VAT-registered businesses, which must keep digital records and file through MTD-compatible software. MTD for Income Tax Self Assessment is being phased in for the self-employed and landlords above set income thresholds, so it pays to get clients onto software early.
What practices should do
Move clients to cloud accounting, make sure digital links are unbroken from records to return, and build a repeatable MTD workflow. Always check the latest thresholds and dates on GOV.UK, as the timetable has shifted before.
Need help with returns? See outsourced VAT returns.