Accounting professional? Find more MTD resources here

Making Tax Digital

Are you ready for digital tax?

Making Tax Digital – or MTD – is the UK’s biggest tax shake-up in a generation. Whether you’re an accountant or business owner, join QuickBooks for the digital tax revolution. We’ll explain what it is, when it's happening and what it will mean for you.

Stay up to date with the latest news about MTD

Making Tax Digital Ready

"What is MTD and why is it happening?”
by Ian Fletcher & Nick Williams – 31s

Find an Advisor

What's Making Tax Digital?

Making Tax Digital is HMRC’s plan to bring UK tax into the digital age. In a nutshell, nearly every UK business will be affected.

  • Tax returns will have to be submitted digitally through an MTD-compliant software. Tax submissions by post or through HMRC's website will be phased out.
  • All business-related transactions will have to be recorded digitally using MTD-compliant software or apps.

Find out when Making Tax Digital affects you

April 2019

VAT (phase 1)

Who’s affected? VAT registered businesses with turnover above the VAT threshold (currently £85,000 excluding VAT).

How?

  • MTD-compliant software or apps will have to be used to keep a digital record of VAT transactions
  • MTD-compliant software or apps will have to be used to submit VAT returns
  • Submitting VAT returns using HMRC’s own VAT online services (currently accessed by logging on to HMRC’s site) will no longer be possible

April 2020

VAT (phase 2)

Who’s affected? The remaining VAT registered businesses – those voluntarily VAT registered with VAT-able turnover under £85,000.

How?

  • MTD-compliant software or apps will have to be used to keep a digital record of VAT transactions
  • MTD-compliant software or apps will have to be used to submit VAT returns
  • Submitting VAT returns using HMRC’s own VAT online services (currently accessed by logging on to HMRC’s site) will no longer be possible

April 2020+

Corporation tax & self-assessment

Who’s affected? Sole-traders, partnerships, landlords and trading companies. (The start date will be confirmed by the government following the successful roll out of Making Tax Digital for VAT.)

How? It's likely that:

  • MTD-compliant software or apps will have to be used to keep a digital record of financial transactions
  • MTD-compliant software or apps will have to be used to submit quarterly updates to HMRC for both income and corporation tax purposes

Useful guides to get ready for MTD today

Accountants & bookkeepers

Making Tax Digital Accountant Marketing Kit

After reading this FREE kit, created with Ian Fletcher, you’ll be able to:

  • Create a winning plan to educate clients and staff about MTD.
  • Use telephone scripts and example client letters.
  • Understand how to stay ahead of your competition.

Small businesses

Making Tax Digital for VAT Guide

After reading this FREE guide for small businesses you'll be able to:

  • Understand what Making Tax Digital is.
  • Know when Making Tax Digital for VAT starts and who it affects.
  • Get prepared quickly and easily.

Speak to an MTD expert today

Our dedicated team is always here to help about Making Tax Digital.

Request a callback

Or call 0808 168 4252

Frequently asked questions

  • When does Making Tax digital start?
    • From 6th April 2019 if you’re VAT registered with VAT-able turnover of £85,000 or more then you’ll be required to keep a digital record of your VAT transactions and submit your VAT returns using MTD-compliant software.
  • What are the benefits of MTD?
    There are four main benefits:
    • Digitalisation will improve the quality of record keeping.
    • Less manual entry should mean fewer errors.
    • Managing business affairs will become more efficient - especially if you adopt a cloud-based solution which can be accessed anywhere.
    • You’ll spend less time gathering and inputting data.
  • How can QuickBooks help me get MTD ready?
    QuickBooks Online is cloud-based software that helps small businesses and accounting professionals with VAT management. QuickBooks allows users to track, calculate, report and even submit online. It also allows secure communication between accountant and client within the software. Making Tax Digital starts with VAT from April 2019 (for those VAT-registered businesses with turnover above £85,000). For those businesses affected:
    • MTD-compliant software or apps will have to be used to keep a digital record of VAT transactions
    • MTD-compliant software or apps will have to be used to submit VAT returns.
    • HMRC’s own VAT online services (currently accessed by logging on to HMRC’s site) will no longer be used to submit VAT returns.