MAKING TAX DIGITAL
Know your Business…
What is MTD?
Making Tax Digital (MTD) is a fundamental change to the UK tax system. It is a Government-led plan designed to make it easier for individuals and businesses to calculate how much tax they owe. Every individual and business will have their own on-line Personal Tax Account.
Making TAX Digital for VAT (MTDfV)
Since April 2019, most VAT-registered taxpayers with a taxable turnover above the VAT threshold of £85,000 have been required to operate Making Tax Digital for VAT (MTDfV).
In July 2020, the Government announced a series of reforms to Making Tax Digital and these are highlighted below:
- Making Tax Digital for VAT (MTDfV)
From April 2022, all VAT registered businesses must follow these rules regardless of turnover for their first return on or after 1 April 2022.
This includes those business who currently have an exemption or who are intending to apply for one.
Such business can already sign up voluntarily through the GOV.UK website.
- Making Tax Digital for ITSA
MTD ITSA will now be introduced in phases from 6 April 2026
- Making Tax Digital for Corporation Tax
Further announcements to follow from UK Government
![](https://dxd.scot/wp-content/uploads/2018/09/ghost-presenter-428321-1920-1.jpg)
![](https://dxd.scot/wp-content/uploads/2018/08/ICAEW-logo-e1543484161826.png)
![](https://dxd.scot/wp-content/uploads/2018/08/xero-certified-advisor-V001.png)
![StarlingBank_Partner-Logo_Small (002)](https://dxd.scot/wp-content/uploads/2020/08/StarlingBank_Partner-Logo_Small-002.png)
![](https://dxd.scot/wp-content/uploads/2018/10/freeagent-logo.png)
![](https://dxd.scot/wp-content/uploads/2018/11/BAS_logo_stacked_blk_rgb.jpg)
![](https://dxd.scot/wp-content/uploads/2020/06/PAGE-1-HOME-white-money-printed-card-2733657.jpg)