Making Tax Digital (MTD) is the UK government’s flagship programme to make tax accounting easier for businesses and individuals such as sole traders.
As you might guess from the name, it does this by legislating the digitalisation of tax data and submission.
Making Tax Digital for Income Tax Self Assessment becomes law on 6 April 2024.
You might already use HMRC’s online services to complete tasks such as submitting your tax returns. But MTD for Income Tax, as it’s commonly known, goes further than that. It requires the use of software for your accounting. It even ends the need to submit annual tax returns.
There are an incredible number of benefits for businesses and individuals when it comes to digitalising taxes. For example, cash flow is improved because you have a good idea throughout the year how much tax you owe.
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