Making Tax Digital
As a UK business owner, landlord, or self-employed professional, you're constantly balancing growth with compliance demands. The shift to digital tax reporting can seem like another hurdle in an already busy world.
Understanding Making Tax Digital
Making Tax Digital (MTD) is HMRC's initiative to digitise tax records and submissions, reducing mistakes and improving efficiency. It applies to VAT since 2019, ITSA from 2026, with corporation tax plans scrapped in 2025. Dive deeper into basics in Getting Started with Making Tax Digital.
The Challenges of Tax Compliance
Traditional tax methods often lead to errors, time-consuming paperwork, and unexpected penalties. With HMRC pushing for modernisation, manual processes risk fines and inefficiencies, especially for VAT, income tax, and specific scenarios.
STAT: Over 70% of businesses report reduced errors after adopting digital tax tools.
Who Needs MTD?
MTD affects VAT-registered businesses now, and from April 2026, self-employed, landlords, and partnerships with qualifying income over £50,000; £30,000 from 2027; potentially £20,000 from 2028. Exemptions apply for low-income or digitally excluded. For details, see Specific Audiences for MTD and Specific Scenarios in MTD.
Benefits of Embracing MTD
MTD offers real-time tax insights, automated filings, and fewer audits. Businesses save time, cut costs long-term, and gain better financial control. For VAT-registered entities, it's already streamlining operations; ITSA will do the same for self-employed and landlords.
Explore audience-specific gains in Specific Audiences for MTD.
Key Requirements and Timeline
Requirements include digital records, MTD-compliant software for submissions, and quarterly updates for ITSA. Timeline: VAT mandatory for all since 2022; ITSA starts April 2026 for £50,000+ income, 2027 for £30,000+. No MTD for corporation tax. Software options in Compliant Software for MTD. Details on deadlines in MTD for VAT, MTD for Income Tax (ITSA), and MTD for Corporation Tax.
STAT: Estimated 4.2 million affected by ITSA rollout.
Envision Success and Avoid Pitfalls
With MTD, enjoy streamlined taxes, peace of mind, and focus on business growth. Without it, face penalties, delays, and added costs.
Making Tax Do-able with PJL Accounts
At PJL Accounts, we've supported countless clients through MTD transitions, from software setup to scenario handling. Our testimonials speak volumes: "PJL made MTD simple and stress-free." As trusted accountants, we provide personalised expertise to ensure your success.
Guided Preparation Steps
✅ Step 1: Check if You’re Registered
New VAT registrations are auto-enrolled into MTD.
If you registered before April 2022 and haven’t switched, you need to act now.
✅ Step 2: Register for MTD for VAT (if needed)
Use your Government Gateway login
Sign up here: Sign Up with HMRC
Register at least 7 days before your next VAT Return is due
Wait for HMRC confirmation (usually within 72 hours)
✅ Step 3: Using an Agent?
We can register and manage MTD for you
You stay hands-off—we do the admin and handle compliance
If challenges arise, reach out to us for tailored assistance.
Remember we are here to enhance your work life balance. We have three ways to get you ready for ‘Making Tax Digital’.
Do you need to Dig Deeper?
Everything you need to know today and tomorrow about Making Tax Digital
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Getting Started with Making Tax Digital
In this chapter
– What is MTD?
– The Benefits of MTD
– The Requirements of MTD
– The MTD Timeline -
Making Tax Digital for VAT
In this chapter
– Deadlines
– Registration
– Gateway (Login)
– Compliant Software
– Exemptions -
Making Tax Digital for Income Tax (ITSA)
In this chapter
– Deadlines
– Eligibility
– Compliant Software
– Exemptions
– MTD for Self Employed
– MTD for Landlords -
Making Tax Digital for Corporation Tax
In this Chapter
– Deadlines
– Compliant Software -
Specific Audiences
In this chapter
– Self Employed (Self Assessment)
– Landlords
– Accountants
– Small Business
– Partnerships -
Compliant Software
In this chapter
– HMRC Approved
– Bridging
– Sage for MTD
– Xero for MTD
– Quickbooks and MTD
– Software for Landlords
– Software for Self Employed -
Registration and Setup
In this chapter
– Government Gateway
– Choosing your Agent
– Registering your business -
Challenges and Considerations
In this chapter
– Penalties
– Delays
– Costs
– Support Challenges -
Specific Scenarios
In this chapter
– Non VAT Businesses
– CIS (Construction Industry Scheme)
– Joint Properties
– Niche Businesses