Hingston Publishing Co.

Making Tax Digital (MTD)

Making Tax Digital is a UK government initiative that sets out a vision for the ‘end of the tax return’ and a ‘transformed tax system’ which was originally announced in 2015 and intended to be in place by 2020. However the roll out has been delayed.

Whilst all VAT-registered businesses have now had to implement MTD and are, therefore, required to keep digital records and file their tax returns digitally, Making Tax Digital (MTD) for non-VAT registered Businesses has been delayed again.

Hingston Publishing Co

So that’s good news! This delay to the implementation of MTD means we can continue to use The Best Small Business Accounts Books until the new dates given below, writes Peter Hingston.

In December 2022 the government announced it would give small businesses a longer period before MTD for Income Tax Self Assessment has to be implemented. The mandatory use of accounts software is therefore being phased in from April 2026, rather than April 2024.

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and send a quarterly summary of their income and expenditure to HMRC using MTD-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027. HMRC are currently reviewing the situation for businesses with income below £30,000.

Using MTD-compatible accounts software will replace the need for a Self Assessment Tax Return.

General partnerships will not have to implement MTD in 2025 as previously announced, but no new date was given at the time of the December 2022 announcement.

Please note this web page is for general guidance only and should not be regarded as a complete or authoritative statement of the law. You are strongly advised to consult an accountant and HMRC.