Making Tax Digital (MTD) for all businesses

Making Tax Digital (MTD) is the biggest tax shake up to date, with HMRC aiming to make the UK “one of the most digitally advanced tax administrations in the world”. While there have been some shifting deadlines, MTD will be here to stay.

Since April 2022, MTD applies to all VAT businesses (this includes those below the VAT threshold). Then from April 2024, MTD for Income Tax Self Assessment (also known as MTD for Income Tax or MTD for ITSA) will come into force.

That means certain sole traders and landlords will need to start reporting their earnings using MTD. General partnerships will be included from 2025. And no sooner than 2026, incorporated businesses will have to adhere to MTD for Corporation Tax.

KKVMS are an approved Xero partner and integrate with MTD for business, please get in touch to ensure your company is compliant with these planned changes..