Making Tax Digital

Making Tax Digital (MTD) is a government initiative that will change the way businesses maintain their tax records and the software they use to send tax returns.

From April 1st 2019, VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are required to keep digital records for VAT and send HMRC returns using software that is compatible with Making Tax Digital.

Some businesses have had their start dates deferred until October 2019, but the vast majority will need to ensure they are ready for the April 1st 2019 deadline.

Are the deadline for sending returns changing?

No. The deadlines for sending VAT returns and making payments are not changing, including for monthly, quarterly and annual VAT return schemes, but businesses will have to keep digital records and send the returns to HMRC using MTD-compatible software for VAT accounting periods that start on or after April 1st 2019. This also applies to businesses that operate the Flat Rate Scheme for VAT.

The government has published a VAT Notice about Making Tax Digital which businesses and agents may find useful.

You can also find out more about which software products are already compatible for Making Tax Digital for VAT.

Find more information about Making Tax Digital

See the help and support available for businesses on the government website, and read more advice on getting ready for Making Tax Digital for VAT.

Seymour Taylor advice on Making Tax Digital

Seymour Taylor, a Buckinghamshire Business First Stakeholder member, has advice for fellow members on preparing for Making Tax Digital. Watch their video here >

Listen to recordings of previous webinars about Making Tax Digital

• Introduction to Making Tax Digital, part 1
• Making Tax Digital for business, part 2

Find out more about Making Tax Digital for Income Tax

Only VAT is affected by the April 1st 2019 deadline, but Making Tax Digital will also factor in Income Tax in the future.

There is a pilot programme ongoing for Making Tax Digital for Income Tax that is available on a voluntary basis. It will not be mandatory for businesses until at least 2020. Businesses can sign up if they’re a sole trader with income from one business and/or are landlords (except those with furnished holiday lettings).

Find more information about Making Tax Digital for Income Tax, including how to get involved in the pilot.

You can find out more about which software products are already compatible with Making Tax Digital for Income Tax.