ICAEW.com works better with JavaScript enabled.

Making Tax Digital

Making Tax Digital (MTD) is a fundamental change to the administration of the UK tax system. It affects how businesses and other organisations, agents and individuals maintain their accounting and tax records and how they transact and communicate with HMRC. MTD has two key elements, MTD for VAT and MTD for income tax self assessment (ITSA).

Contents
Back to top
Need to know

MTD: Overview

ICAEW's Tax Faculty outlines the key things businesses and agents need to know about Making Tax Digital, as well as a timeline for its phased introduction.
Read more
Need to know

MTD income tax self assessment

Making Tax Digital income tax self assessment is being phased in from April 2026. ICAEW's Tax Faculty outlines how the system is likely to work and the progress of the testing.
Read more

MTD: What you need to know

The key information on MTD for VAT and MTD for ITSA, covering the rules, how to comply and ensuring your practice is prepared.

MTD overview
  • Helpsheets and support
  • 17 Apr 2024
ICAEW's Tax Faculty outlines the key things businesses and agents need to know about the Making Tax Digital Regime and a timeline for its introduction.
Exclusive MTD income tax self assessment
  • Helpsheets and support
  • 16 Feb 2024
Making Tax Digital income tax self assessment is being phased in from April 2026. ICAEW's Tax Faculty outlines how the system is likely to work and the progress of the testing.
Exclusive MTD ITSA: frequently asked questions
  • Helpsheets and support
  • 25 Apr 2022
ICAEW's Tax Faculty provides answers to questions concerning the introduction of Making Tax Digital income tax self assessment from April 2024.
Exclusive MTD and VAT
  • Helpsheets and support
  • 04 Oct 2022
The first stage of HMRC's Making Tax Digital (MTD) programme focuses on VAT and imposes new requirements keeping on some VAT registered businesses and organisations from April 2019.
Exclusive Software for MTD
  • Helpsheets and support
  • 22 Sep 2020
ICAEW shares the latest information about the Making Tax Digital (MTD) software that taxpayers and agents will need to keep digital records and to submit information to HMRC.
Exclusive MTD for VAT penalties
  • Helpsheets and support
  • 09 Jan 2023
The introduction of Making Tax Digital for VAT has prompted discussion about the risk of penalties where introducing new processes breach of the regulations.
Legislation for Making Tax Digital
  • Listing
  • 17 Apr 2024
Links to the enacted and proposed legislation mandating Making Tax Digital.
Exclusive Signing up for MTD
  • Helpsheets and support
  • 01 Dec 2022
ICAEW's Tax Faculty provides step-by-step guides on how to sign up for Making Tax Digital VAT (MTD VAT) and MTD income tax self assessment (MTD ITSA) for businesses and for tax agents.
SEE MORE ARTICLES

Features and articles

 
HMRC contacts more taxpayers named in the Pandora Papers
  • Article
  • 18 Apr 2024
HMRC is sending a further batch of one-to-many letters to taxpayers it suspects may have UK tax to pay on foreign income and gains.
Only five software products ready for MTD ITSA testing
  • Article
  • 09 Apr 2024
Just five software products will be available at the launch of MTD ITSA private beta testing on 22 April.
HMRC publishes extra guidance on lifetime allowance abolition
  • Article
  • 09 Apr 2024
HMRC has published additional guidance for pension scheme administrators on a range of issues, including the abolition of the lifetime allowance.
New penalty regime to apply to taxpayers testing making tax digital
  • Article
  • 08 Apr 2024
HMRC has explained how penalties will be charged where volunteers testing making tax digital income tax self assessment are late in making a payment or submitting a return.
New guidance on applying for help with paying IHT
  • Article
  • 02 Apr 2024
HMRC has published guidance on applying for a grant on credit and on recent updates to tax rules and processes relevant to trusts and estates.
Improved process for paying voluntary NIC for periods abroad
  • Article
  • 02 Apr 2024
A person living or working abroad can apply digitally to pay voluntary NIC to fill gaps in their record.
Making tax digital testing to be launched
  • Article
  • 28 Mar 2024
Agents will be invited to sign up clients later in April for making tax digital income tax self assessment. ICAEW will consider the pros and cons in a webinar.
ICAEW gives five reasons to use the HMRC app
  • Article
  • 28 Mar 2024
Join the 1.2m people a month using HMRC’s app to get tax information, stay up to date with tax payments and more.

Recordings

Webinars, videos and podcasts from ICAEW on the MTD regime.

Exclusive MTDtalk April 2024
  • Webinar
  • 24 Apr 2024
The latest information and guidance on Making Tax Digital income tax self assessment (MTD ITSA) from the Tax Faculty.
The Tax Track
  • Podcast
  • 12 Jan 2024
We’ve launched a new podcast series: The Tax Track, where members of the Tax Faculty chat about all things tax. The third episode looks at a VAT case about poppadoms and tax changes taking effect from April 2024. Make sure to subscribe so that you never miss an episode.
Making Tax Digital for ITSA delay - what does this mean in practice?
  • Webinar
  • 20 Feb 2023
The impact of the MTD delay and how to stay on track with digitalisation.
Making Tax Digital for ITSA delay - what does this mean in practice?
  • Webinar
  • 20 Feb 2023
The impact of the MTD delay and how to stay on track with digitalisation.
MTDtalk 2022
  • Webinar
  • 21 Dec 2022
In this series of webinars the ICAEW Tax Faculty (Anita Monteith and Caroline Miskin) and guests will provide the latest information and guidance on MTD ITSA, covering topics such as choosing software, the progress of HMRC’s pilot, the practicalities of signing up and answer questions from businesses and practitioners.
Exclusive Spring statement and tax : will it make any difference to you?
  • Webinar
  • 24 Mar 2022
In this webinar the Tax Faculty team will provide analysis of the Chancellor's spring statement presented on 23 March.
Tax planning for landlords
  • Webinar
  • 14 Oct 2021
Advise clients on making the most of their buy-to-let assets whether looking to sell, generate a steady income or pass down to the next generation.
Getting ready for MTD with Sage
  • Webinar
  • 07 Oct 2021
Hear from the experts as they cover off the key stages of preparation for Making Tax Digital for Income Tax.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Business profits
  • eBook chapter
  • 2024
  • Lucy Webb
Tax rates and tables for business profits, updated to reflect measures announced in the Autumn Statement on 22 November 2023 and changes proposed in the Autumn Finance Bill 2023. The chapter includes sections on MTD, cash basis, fixed rate deductions, averaging profits for farmers and artists, car hire costs, residential property lettings, time limits for claims and elections, lease premiums and SEISS.
Exclusive Making tax digital tracker
  • eBook
  • 2023
  • Emma Rawson
The Tracker provides plain English guidance on the operation of MTD, with sections covering VAT, income tax, corporation tax and tax agents in relation to MTD. 
Exclusive Tax returns
  • eBook chapter
  • 2023
  • Robert Maas
A chapter on taxpayers' rights and HMRC powers in relation to tax returns.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

HMRC guidance and other external resources

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

HMRC email updates, videos and webinars for Making Tax Digital
  • Website
  • 31 Mar 2023
  • HMRC
Help and support from HMRC on MTD for Income Tax and VAT, aimed at both agents and businesses.
Making Tax Digital for VAT hub
  • Website
  • 22 Oct 2021
  • HMRC
Collection of practical guides for agents and businesses, including how to find compatible software and apply for an exemption.
Making Tax Digital for Income Tax hub
  • Website
  • 22 Oct 2021
  • HMRC
Collection of guides for agents and businesses on signing up and using MTD for income tax, including a list of compatible software available now.
VAT Notice 700/22: Making Tax Digital for VAT
  • Website
  • 07 May 2021
  • HMRC
Updated guidance on digital record keeping and returns. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, what counts as compatible software, and gives examples of when digital links are required.
Making Tax Digital for Corporation Tax consultation
  • Website
  • 11 Jan 2021
  • HMRC
HMRC consultation on how MTD could be implemented for corporation tax. The consultation period closed on 5 March 2021.
Overview of Making Tax Digital
  • Website
  • 12 Nov 2020
  • HMRC
Policy paper explaining the foundations of MTD, with links to research reports and further guidance on MTD for VAT, income tax and corporation tax.

Further support

Exclusive Tax Advice Helpline for Small Practitioners
Specialist advice for accountants from Markel Tax.
Tax Faculty Find out more about the Tax Faculty and upcoming events. Faculty members can access exclusive content, including TAXline, TAXguides, webinars, representations and support schemes.
TAXconnect
Search for a consultant to help you with a specific technical tax problem. TAXconnect works on a telephone ‘hotline’ system, whereby consultants offer advice to fellow Tax Faculty members and Faculties Online subscribers on tax problems for a nominal fee.
Can't find what you're looking for?

The ICAEW Library can give you the right information from trustworthy, professional sources that aren't freely available online. Contact us for expert help with your enquiries and research.