MTD

Introduced by HMRC in April 2019, Making Tax Digital (MTD) aims to enhance the accuracy of financial reporting for businesses. By focusing on individual transactions rather than summaries, MTD ensures that businesses report precise financial data using compatible software. While this brings greater scrutiny to reporting, it also offers numerous benefits for accountants and business owners.

MTD for VAT represents a significant shift for businesses and individuals, simplifying the process of managing, reporting, and paying taxes to HMRC. All VAT-registered businesses must now comply with the MTD requirements by signing up with HMRC and using MTD-compliant software to submit their VAT returns.

There are exemptions available for certain businesses, but unless your business qualifies for or has been granted an exemption, adherence to the MTD scheme is mandatory.