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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 (MTD IT).

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Need to know

MTD: Explainer

ICAEW's Tax Faculty sets out the key things taxpayers and agents need to know about Making Tax Digital (MTD), including the timeline for the phased introduction of MTD for income tax (MTD IT, formerly MTD ITSA).

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Need to know

MTD income tax

Making Tax Digital (MTD) is being phased in for income tax (IT) from April 2026. ICAEW's Tax Faculty outlines how the system is likely to work and the progress of the testing.

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MTD: What you need to know

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

Economy explainers: what is MTD?
  • Article
  • 09 Dec 2024
ICAEW's Tax Faculty sets out the key things taxpayers and agents need to know about Making Tax Digital (MTD), including the timeline for the phased introduction of MTD for income tax (MTD IT, formerly MTD ITSA).
MTD income tax
  • Helpsheets and support
  • 12 Dec 2024
Making Tax Digital (MTD) is being phased in for income tax from April 2026. ICAEW's Tax Faculty outlines how the system is likely to work and the progress of the testing.
MTD ITSA: frequently asked questions
  • Helpsheets and support
  • 27 Jun 2024
ICAEW's Tax Faculty provides answers to questions concerning the introduction of Making Tax Digital income tax self assessment from April 2024.
MTD and VAT
  • Helpsheets and support
  • 30 May 2024
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.
Software for MTD
  • Helpsheets and support
  • 25 Apr 2024
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.
MTD for VAT penalties
  • Helpsheets and support
  • 30 May 2024
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.
Signing up for MTD
  • Helpsheets and support
  • 26 Jun 2024
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

 
How to fix VAT: digitalising the system
  • Article
  • 19 Dec 2024
Digitalisation of VAT promised great rewards, but initial attempts have faltered as HMRC navigates unexpected complexities in the system and the range of taxpayers it deals with. Despite some success, more work is needed to push the changes through.
Mixed scorecard for HMRC on making tax digital
  • Article
  • 17 Dec 2024
In its annual report for 2024, the administrative burdens advisory board (ABAB) has praised HMRC for the quality of its engagement on making tax digital for income tax (MTD IT) and has set out areas where concerns remain.
MTD for income tax: Your quick start guide
  • Article
  • 29 Nov 2024
As we navigate through the self-assessment season, many accountants are also planning their MTD income tax service offerings. But where do you start?
Technical round-up: November 2024
  • Article
  • 28 Nov 2024
This month’s top stories feature Budget measures you may have missed; a deadline extension for providing agent codes; and data that suggests improvement on HMRC call handling.
Economy explainers: what is MTD?
  • Article
  • 26 Nov 2024
ICAEW's Tax Faculty sets out the key things taxpayers and agents need to know about Making Tax Digital (MTD), including the timeline for the phased introduction of MTD for income tax (MTD IT, formerly MTD ITSA).
Free CPD: the latest developments in tax
  • Article
  • 26 Nov 2024
Keeping up to date with tax policy and practice is a key part of many accountants’ professional development. Whether you’re analysing the implications of the Budget or planning for MTD ITSA, ICAEW has content that can support your CPD.
Tax news in brief 20 November 2024
  • Article
  • 19 Nov 2024
Highlights from the broader tax news for the week ending 20 November 2024, including: an update on MTD ITSA; suggestions for HMRC on how to reduce the tax gap; and legislation to enact the changes to business rates announced at the Autumn Budget 2024.
Government and developers commit to MTD ITSA from 2026
  • Article
  • 12 Nov 2024
Recent announcements by the government and software developers remove any doubt about the introduction of making tax digital income tax self assessment (MTD ITSA).

Recordings

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

Tackling Self Assessment and MTD for Income Tax with AutoEntry
  • Webinar
  • 07 Nov 2024
Are you ready for the pre-accounting revolution? Get ahead of MTD for ITSA prep with time-saving tools.
MTD: what you should do now
  • Podcast
  • 29 Aug 2024
This episode of The Tax Track looks at what agents need to do now to ensure that their practice and their clients are ready for MTD ITSA, starting in April 2026.
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.
Exclusive Tax in practice
  • Webinar
  • 26 Sep 2023
Find out the latest on HMRC's service performance and MTD for income tax self assessment, in the September edition of Tax in Practice. Experts from ICAEW's Tax Faculty also provide key reminders on deadlines and changes, as well as outlining the potential impacts of July's legislation day.
Tax in Practice - July 2023
  • Webinar
  • 11 Jul 2023
Join the Small Practitioners Community, ICAEW Tax Faculty and guest speaker Rebecca Benneyworth as they talk about HMRC service levels, MTD ITSA, marriage allowance, and changes to HMRC services.
Tax in Practice - April 2023
  • Webinar
  • 26 Apr 2023
Join the Small Practitioners Community, ICAEW Tax Faculty and guest speaker Rebecca Benneyworth as they talk about HMRC service performance and ADL restrictions, MTD ITSA small business review, change to HMRC digital services, tax consultations and more.
Tax in Practice - February 2023
  • Webinar
  • 22 Feb 2023
Conversations between Rebecca Benneyworth and the ICAEW Tax Faculty covering MTD ITSA delay, employer issues and things to be aware of in the run up to the end of the tax year.
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.

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 passed in the Finance (No 2) Act 2024. 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. Includes information on penalties which may be imposed for non-compliance with the MTD regime, as well as the appeals process.
Exclusive Tax returns
  • eBook chapter
  • 2023
  • Robert Maas
A chapter on taxpayers' rights and HMRC powers in relation to tax returns.
Terms of use

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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.

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.
Find out if you can get an exemption from Making Tax Digital for Income Tax
  • Website
  • 24 Oct 2024
  • HMRC
Check if you can apply for an exemption from Making Tax Digital for Income Tax in the future.
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.
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.
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ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

Further support

Exclusive Tax Advice Helpline for Small Practitioners
  • Helpsheets and support
Specialist advice for accountants from Markel Tax.
Tax Faculty
  • Hub page
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
  • Listing
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 on tax problems for a nominal fee.
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