Making Tax Digital

Making Tax Digital (MTD) is an initiative by the UK government aimed at modernizing the tax system. It requires businesses and individuals to keep their tax records digitally and submit their tax information online, using compatible software. This change aims to make tax reporting more efficient, reduce errors, and simplify the process for taxpayers. Under MTD, VAT-registered businesses must comply with these digital record-keeping requirements, while broader income tax and corporation tax regulations are being gradually introduced. Overall, MTD seeks to streamline and improve the transparency of the tax system in the UK.