What's happening with Making Tax Digital?

Anna Stubbs • February 5, 2025

Keeping up to date with HMRC’s Making Tax Digital initiative is important, whatever size business you run and however you currently record, submit and pay your business taxes.

Let’s take a quick look at the goals of Making Tax Digital (MTD), which requirements are currently mandatory and which elements are likely to change in the near future.

What is Making Tax Digital?

The aims of MTD are to modernise the UK tax system by requiring businesses and individuals to keep digital records and file their tax returns using compatible software.


Key goals of MTD are to:

Improve accuracy by pushing businesses, and some individuals, to use accounting software to keep accurate digital records – moving away from paper-based records.

Increase efficiency by using digital filing and tax submissions to reduce the time and effort required for tax returns.Enhance compliance, by moving to quarterly returns that make it easier for HMRC to monitor tax compliance and identify potential fraud.


Which parts of MTD are currently mandatory?

MTD has been in the works for a number of years, with several delays and setbacks to the original agenda. Some elements of MTD are now in use, and others are likely to be introduced in the near future. Here’s a breakdown of what’s currently expected of your business.


Current elements of MTD for businesses:

MTD for VAT – under the MTD for VAT rules, all VAT-registered businesses must keep digital records and file quarterly VAT returns using compatible software. This has been mandatory since April 2019.


Upcoming elements of MTD for businesses:

MTD for Income Tax Self Assessment – MTD for ITSA is currently being piloted. From April 2026, it will become mandatory for sole traders and landlords with annual income above the £30,000 p/a threshold. All qualifying individuals will need to keep digital records and submit quarterly updates.

MTD for Corporation Tax – the government has announced plans to introduce MTD for Corporation Tax (CT), and held a consultation on how MTD for CT might work. The exact timeline for introducing MTD for CT has not been confirmed, but, at present, it’s unlikely to happen before April 2026.


Talk to us about getting MTD compliant

If you’re not yet registered for MTD for VAT and are worried about complying with the regulations, please do come and have a chat with our tax team.

Setting up accounting software and digital recordkeeping tools can be extremely straightforward, making your bookkeeping and tax management far more effective

Reducing the uncertainty: strategic business reviews

By Anna Stubbs • July 24, 2025
In a world where evolving political events can change the market in an instant, and economic instability is still the norm, finding certainty in your business strategy is a rarity. Business plans and your overriding strategy are no longer written in stone. This means being flexible about your next steps and regularly reviewing your business strategy. Let’s see how frequent strategic business reviews can help you reduce the uncertainty.

Selling your business: getting a good deal

By Anna Stubbs • July 24, 2025
You’ve spent years growing your business and adding value to the company. Now it’s time to sell up, get a good deal and liquidise the equity you’ve had locked up in the business. In this series, we’ll give you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold. Let’s look at some important ways to achieve the best possible deal for your business sale. Selling your business is generally the end step in a much longer journey. If you’ve put together a detailed exit strategy, you’ll have been planning this sale for some time. The important thing at this point is to make sure you get a great deal and realise the best possible sale price – giving you the return you deserve for all your hard work. To put yourself in the optimum position when looking for a buyer, here are a few tips: 

If I’m working ON my business what should I be doing?

By Anna Stubbs • July 24, 2025
I’m sure you’ve heard about the need to work ‘on’ your business as well as working ‘in’ your business. But have you ever stopped to think what exactly you should be doing? First some practical distinctions to compare working ‘on’ and working ‘in’.