Making Tax Digital – HMRCs digitalisation strategy – is being phased in over several years:
- Making Tax Digital for VAT – from April 2019.
- Making Tax Digital for Income Tax – from April 2026.
- Making Tax Digital for Corporation Tax – date as yet unspecified.
These dates, and all the Making Tax Digital requirements, are mandatory for businesses and/or landlords.
Making Tax Digital for VAT
MTD VAT came in for most VAT registered businesses from April 2019 – for businesses with voluntary VAT registration, the mandation date was April 2022.
This means all VAT registered businesses are now within MTD VAT.
The requirements are to:
- Keep your accounting records Digitally and have Digital Links within differing parts of your records.
- Submit VAT returns via your software – desktop or app – connected to HMRC via API. You can no longer submit VAT returns via HMRC website or on paper.
Read more about Making Tax Digital for VAT
Making Tax Digital for Income Tax Self Assessment
MTD ITSA comes in from April 2026 for:
- Sole Traders
- Landlords
The introduction dates have been changed and deferred a number of times. Currently the staging is:
- From April 2026 sole traders and landlords with turnover or rents of £50,000 or more.
- From April 2027 sole traders and landlords with turnover or rents of £30,000 or more.
- From April 2028 sole traders and landlords with turnover or rents of £20,000 or more.
The key obligations are to:
- Keep Digital Records
- Submit Quarterly Interim Returns to HMRC digitally one month after quarter end
- Submit final returns to HMRC by 31 January after the end of the tax year
Read more about Making Tax Digital for Income Tax
Making Tax Digital for Corporation Tax
This was an aspiration, but has now been abolished – it may, of course, resurface in some form but properly several years hence.