About Making Tax Digital
Making Tax Digital – or MTD as it’s often called – is the UK’s biggest tax shake-up in a generation. Making Tax Digital is HMRC’s plan to bring UK tax into the digital age, beginning in April 2019. In a nutshell, every UK business will be affected. Here’s what will change:
- All business-related transactions will have to be recorded digitally using MTD-compliant software or apps.
- Tax returns will have to be submitted to HMRC in a digital, MTD-compliant way.
If you’d like to learn more about MTD then read on or check out the QuickBooks MTD hub.
Which businesses are affected
Businesses with an annual turnover above the VAT threshold (currently £85,000) will be required to keep their records digitally and file VAT returns online on a quarterly basis. Businesses who are currently exempt from having to file VAT returns online will also be exempt from MTD until otherwise notified by HMRC.
MTD timelines
Businesses with a turnover above the VAT threshold need to comply by April 2019. Businesses below the VAT threshold can comply on a voluntary basis until otherwise notified by HMRC.
Comply with MTD using QuickBooks
We've published an additional FAQ page for everything MTD.
