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Making Tax Digital

Making Tax Digital (MTD) is a fundamental change to the administration of the UK tax system. It affects how businesses and other organisations, agents and individuals maintain their accounting and tax records and how they transact and communicate with HMRC. MTD has two key elements, MTD for VAT and MTD for income tax self assessment (ITSA).

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Need to know

MTD: Overview

ICAEW's Tax Faculty outlines the key things businesses and agents need to know about Making Tax Digital, as well as a timeline for its phased introduction.
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Need to know

MTD ITSA: frequently asked questions

ICAEW's Tax Faculty provides answers to questions concerning the introduction of Making Tax Digital income tax self assessment from April 2024.
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MTD: What you need to know

The key information on MTD for VAT and MTD for ITSA, covering the rules, how to comply and ensuring your practice is prepared.

Exclusive MTD income tax self assessment
  • Helpsheets and support
  • 08 Dec 2022
Making Tax Digital (MTD) for income tax is mandatory from April 2024. ICAEW's Tax Faculty outlines how it is likely to work and the progress of the pilot.
Exclusive MTD and VAT
  • Helpsheets and support
  • 04 Oct 2022
The first stage of HMRC's Making Tax Digital (MTD) programme focuses on VAT and imposes new requirements keeping on some VAT registered businesses and organisations from April 2019.
Exclusive MTD for VAT penalties
  • Helpsheets and support
  • 09 Jan 2023
The introduction of Making Tax Digital for VAT has prompted discussion about the risk of penalties where introducing new processes breach of the regulations.
Exclusive Software for MTD
  • Helpsheets and support
  • 22 Sep 2020
ICAEW shares the latest information about the Making Tax Digital (MTD) software that taxpayers and agents will need to keep digital records and to submit information to HMRC.
Exclusive Signing up for MTD
  • Helpsheets and support
  • 01 Dec 2022
ICAEW's Tax Faculty provides step-by-step guides on how to sign up for Making Tax Digital VAT (MTD VAT) and MTD income tax self assessment (MTD ITSA) for businesses and for tax agents.
Exclusive Preparing your practice for MTD
  • Helpsheets and support
  • 06 Dec 2018
Agents will need to take steps to prepare both their own practices and their clients for the disruption that Making Tax Digital and digitalisation will cause to the market for accounting and tax services.
Exclusive Engagement letters and privacy notices
  • Helpsheets and support
  • 18 May 2022
ICAEW has developed guidance for practice firms on what to include in engagement letters. This page provides a series of sample wordings to help you draft your own engagement letters.
Exclusive MTD ITSA: frequently asked questions
  • Helpsheets and support
  • 25 Apr 2022
ICAEW's Tax Faculty provides answers to questions concerning the introduction of Making Tax Digital income tax self assessment from April 2024.

Features and articles

 
Autumn Statement: the tax changes that didn’t make the headlines
  • Article
  • 29 Nov 2023
ICAEW’s Tax Faculty scans the Autumn Statement documents for other tax-related announcements. Various tax measures can be found in the Overview of tax legislation and rates, the Autumn Statement, and updated Tax information and impact notes.
HMRC provides update on forthcoming Single Trade Window
  • Article
  • 21 Nov 2023
The first phase of the service to make border processes simpler will be available for public use in 2024.
Guidance for making R&D claims released
  • Article
  • 08 Nov 2023
As HMRC issues its guidelines for compliance on what qualifies as R&D for tax purposes, ICAEW also reminds its members of the PCRT guidance relating to R&D tax services.
Public service pensions remedy guidance published
  • Article
  • 10 Oct 2023
HMRC has released a suite of guidance for dealing with public service pensions that are affected by the McCloud remedy, including a tool for calculating the adjustment and making a claim.
Exclusive Getting it wrong: why off-payroll working offset is needed
  • Article
  • 01 Sep 2023
Lindsey Wicks explains the current inequalities when a client makes an incorrect status determination and what the government plans to do to redress the balance.
Exclusive Would removing the VAT exemption for private schools make VAT simpler?
  • Article
  • 01 Sep 2023
Peter Hughes examines the Labour party’s plans to abolish the VAT exemption for private schools.
HMRC’s debt levels remain high as interest rates increase
  • Article
  • 22 Aug 2023
The increase in HMRC interest rates from 22 August 2023 will make it harder for taxpayers to clear these debts.
DPT, transfer pricing and permanent establishment reforms: ICAEW responds
  • Article
  • 22 Aug 2023
ICAEW’s Tax Faculty welcomed HMRC proposals to make the UK legislation more closely aligned with OECD principles, but noted that there were good reasons to not fully adopt the OECD’s 2017 changes to the permanent establishment definition.

Recordings

Webinars, videos and podcasts from ICAEW on the MTD regime.

Making Tax Digital for ITSA delay - what does this mean in practice?
  • Webinar
  • 20 Feb 2023
The impact of the MTD delay and how to stay on track with digitalisation.
MTDtalk 2022
  • Webinar
  • 21 Dec 2022
In this series of webinars the ICAEW Tax Faculty (Anita Monteith and Caroline Miskin) and guests will provide the latest information and guidance on MTD ITSA, covering topics such as choosing software, the progress of HMRC’s pilot, the practicalities of signing up and answer questions from businesses and practitioners.
Exclusive Spring statement and tax : will it make any difference to you?
  • Webinar
  • 24 Mar 2022
In this webinar the Tax Faculty team will provide analysis of the Chancellor's spring statement presented on 23 March.
Tax planning for landlords
  • Webinar
  • 14 Oct 2021
Advise clients on making the most of their buy-to-let assets whether looking to sell, generate a steady income or pass down to the next generation.
Getting ready for MTD with Sage
  • Webinar
  • 07 Oct 2021
Hear from the experts as they cover off the key stages of preparation for Making Tax Digital for Income Tax.
Exclusive Managing tax risks in a complex world
  • Webinar
  • 04 Mar 2021
Join BDO’s James Egert, Karen Riley, Steven Levine and Carrie Rutland as they take a high-level overview of the key risks that companies face in making disclosures, submitting accurate returns and applying the law correctly.
Exclusive Getting research and development claims right
  • Webinar
  • 23 Feb 2021
This webinar will give an overview of the R&D landscape, a practical look and 'what is R&D', how to spot it and how to make an R&D claim.
MTD for Income Tax Self Assessment
  • Webinar
  • 11 Feb 2021
HMRC is expecting to lay the Making Tax Digital for Income Tax Self Assessment Regulations before Parliament in February 2021. This will give effect to the April 2023 start date for MTD for ITSA, as well as confirming many of the requirements (some of the detail will be in tertiary legislation which will follow later).

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Tax planning for farm and land diversification (6th edition)
  • eBook
  • 2023
  • Julie Butler
Julie Butler explores the latest developments in the area of tax planning for farm and land diversification, including protecting the farm's assets, alternative land use, hobby and lifestyle farming, letting activity and divorce and farming.
Exclusive Tax returns
  • eBook chapter
  • 2022
  • Robert Maas
A chapter on taxpayers' rights and HMRC powers in relation to tax returns.
Exclusive Making tax digital tracker
  • eBook
  • 2022
  • Emma Rawson
The Tracker provides plain English guidance on the operation of MTD, with sections covering VAT, income tax, corporation tax and tax agents in relation to MTD. 
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

HMRC guidance and other external resources

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Making Tax Digital for VAT hub
  • Website
  • 22 Oct 2021
  • HMRC
Collection of practical guides for agents and businesses, including how to find compatible software and apply for an exemption.
Making Tax Digital for Income Tax hub
  • Website
  • 22 Oct 2021
  • HMRC
Collection of guides for agents and businesses on signing up and using MTD for income tax, including a list of compatible software available now.
VAT Notice 700/22: Making Tax Digital for VAT
  • Website
  • 07 May 2021
  • HMRC
Updated guidance on digital record keeping and returns. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, what counts as compatible software, and gives examples of when digital links are required.
Making Tax Digital for Corporation Tax consultation
  • Website
  • 11 Jan 2021
  • HMRC
HMRC consultation on how MTD could be implemented for corporation tax. The consultation period closed on 5 March 2021.
Case studies for Making Tax Digital
  • Website
  • 01 Dec 2020
  • HMRC
A series of short case studies from businesses in a range of industry sectors on how Making Tax Digital has worked for them.
Overview of Making Tax Digital
  • Website
  • 12 Nov 2020
  • HMRC
Policy paper explaining the foundations of MTD, with links to research reports and further guidance on MTD for VAT, income tax and corporation tax.
Finance Bill: Written statement - HCWS47
  • Website
  • 13 Jul 2017
  • UK Parliament
Statement made by Mel Stride, Financial Secretary to the Treasury, announcing policy changes to the timeframe and scope of Making Tax Digital rules.

Further support

Exclusive ICAEW Tax and VAT Helpline
ICAEW Tax and VAT helpline is a subscription based service provided by Markel Tax (formerly Abbey Tax). It offers expert, practical advice on UK tax and VAT issues and trends.
Tax Faculty Find out more about the Tax Faculty and upcoming events. Faculty members can access exclusive content, including TAXline, TAXguides, webinars, representations and support schemes.
TAXconnect
Search for a consultant to help you with a specific technical tax problem. TAXconnect works on a telephone ‘hotline’ system, whereby consultants offer advice to fellow Tax Faculty members and Faculties Online subscribers on tax problems for a nominal fee.
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