Making Tax Digital (MTD) aims to transform tax management for businesses by digitizing record-keeping and submissions. Initially applicable to VAT, MTD will eventually encompass all business taxes per HMRC's expansion plan. VAT-registered entities with taxable turnovers above the specified threshold must utilize MTD-compatible software for filing. Businesses may qualify for exemptions under specific conditions, such as lack of internet access or age-related difficulties. While MTD for income tax was expected in April 2024, it will now be mandatory from April 2026 for self-employed individuals and those with rental income exceeding £50,000.
Tax paperwork has always been a bit of a headache, but Making Tax Digital (MTD) is here to change that.
The ultimate goal is for MTD to be used by all business.
No more scrambling through stacks of receipts or manually filling out forms; everything is done digitally, keeping tax affairs streamlined and stress-free.
MTD currently only applies to VAT. The plan would be expanded by HMRC to cover all business taxes.
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