Making Tax Digital: A business owner's guide to MTD
June 7, 2022What is Making Tax Digital?
When does Making Tax Digital start?
Date | MTD Legislation |
---|---|
April 2019 | VAT-registered businesses earning above the VAT threshold (£85,000) must store records digitally and submit VAT returns through MTD. |
April 2022 | All VAT-registered businesses, irrespective of turnover, must submit returns through MTD (including voluntarily VAT-registered businesses earning below £85,000). |
April 2024 | Self-employed workers and landlords earning above £10,000 in a tax year must submit their Income Tax Self Assessment through MTD. |
April 2026 | MTD for Corporation Tax planned to come into effect. |
Do I need to register for Making Tax Digital?
Making Tax Digital for VAT
Your last VAT accounting period before signing up to Making Tax Digital | Submit your VAT return between | Do not sign up to Making Tax Digital from | Sign up to Making Tax Digital from | Your first Making Tax Digital accounting period |
---|---|---|---|---|
1 Jan to 31 March 2022 | 1 April to 7 May 2022 | 28 April to 7 May 2022 | 8 May 2022 | 1 April to 30 Jun 2022 |
1 Feb to 30 April 2022 | 1 May to 7 June 2022 | 31 May to 7 June 2022 | 8 June 2022 | 1 May to 31 July 2022 |
1 March to 31 May 2022 | 1 June to 7 July 2022 | 29 June to 7 July 2022 | 8 July 2022 | 1 June to 31 August 2022 |
1 March to 31 March (monthly submissions) | 1 April to 7 May 2022 | 28 April to 7 May 2022 | 8 May 2022 | 1 April to 30 April 2022 |
A period of 12 months starting on or after 1 April 2021 and before 1 April 2022 (annual submissions starting on the first day of a calendar month) | 2 months after the last day of your accounting period | The7 working days before your Making Tax Digital VAT return needs to be submitted | The day after your VAT return due date until 7 working days before your next VAT Return due date (almost a full year) | A period of 12 months starting on or after 1 April 2022 |
Making Tax Digital for Income Tax
Quarterly period | Quarterly deadline |
---|---|
6 April to 5 July | 5 August |
6 July to 5 October | 5 November |
6 October to 5 January | 5 February |
6 January to 5 April | 5 May |
Quarterly period | Quarterly deadline |
---|---|
1 April to 30 June | 5 August |
1 July to 30 September | 5 November |
1 October to 31 December | 5 February |
1 January to 31 March | 5 May |
Before MTD for Income Tax | After MTD for Income Tax |
---|---|
1 submission on 31st January annually | 4 quarterly submissions |
Paper filings by 31st October annually | 1 annual End of Period statement for business income and 1 Final Declaration for all additional personal income |
Digital submissions by 31st January annually | All filing to be done using MTD-compliant software |
Both digital and paper records accepted | Only digital records accepted |
Making Tax Digital for Corporation Tax
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