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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 self assessment (ITSA).

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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.
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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.
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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.
MTD income tax self assessment
  • Helpsheets and support
  • 27 Jun 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.
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.
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Features and articles

 
Prepare for MTD ITSA: manging workflows
  • Article
  • 31 Oct 2024
Submitting updates for clients within MTD ITSA in the same month, four times a year, presents a huge challenge for firms. In the second of a series of articles, Rebecca Benneyworth considers how to manage information and workloads.
Technical round-up: October 2024
  • Article
  • 31 Oct 2024
This month’s top stories feature eight Budget updates covered by ICAEW’s Tax Faculty, a list of software products that are now ready for MTD ITSA, and new VAT guidance for private schools.
Budget makes changes to how the tax system is administered
  • Article
  • 30 Oct 2024
The Budget included several announcements on how HMRC will tackle non-compliance in the tax system, as well as an important update on making tax digital for income tax self assessment (MTD ITSA).
Tax news in brief 30 October 2024
  • Article
  • 29 Oct 2024
Highlights from the broader tax news for the week ending 30 October 2024, including: a MTD ITSA event organised by HMRC; an online tool for taxpayers from HMRC; and an update from HMRC on tax avoidance schemes.
New HMRC MTD ITSA tool
  • Article
  • 21 Oct 2024
HMRC has published a guidance tool which allows a taxpayer to check if they are required to comply with making tax digital (MTD) income tax self assessment (ITSA).
Nine software products support MTD ITSA
  • Article
  • 15 Oct 2024
FreeAgent and Hammock for landlords have joined the list of software products that are now ready for making tax digital income tax self assessment (MTD ITSA).
Record number respond to ABAB tax survey
  • Article
  • 01 Oct 2024
ABAB’s annual survey suggests that most agents and businesses see no benefits to making tax digital for income self assessment (MTD ITSA), and that frustration with HMRC’s service levels is growing.
Prepare for MTD ITSA: review clients’ needs
  • Article
  • 23 Sep 2024
Building a work list around clients who will be mandated into Making Tax Digital income tax self assessment (MTD ITSA) in 2026 is a task to start now. In the first in a series of articles, Rebecca Benneyworth sets out the steps to take first.

Recordings

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

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.
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.

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.
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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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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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