Making Tax Digital (MTD)

The shift to HMRC’s Making Tax Digital (MTD) framework introduces new compliance and operational requirements for businesses, landlords, and individuals. At Prime Taxation, our specialist tax and accounting team provides strategic guidance and hands-on support to help you transition smoothly and remain fully compliant with digital reporting obligations.

MTD represents a major step toward HMRC’s goal of becoming a fully digital tax authority. While the initiative aims to improve efficiency, reduce filing errors, and streamline submissions, successful implementation requires the right technology, planning, and processes.

✅ MTD for VAT

Launched in April 2019, MTD for VAT marked the beginning of this digital transformation. Businesses over the VAT threshold must now maintain digital records and file returns using MTD-compatible software.

✅ MTD for Income Tax Self-Assessment (MTD for ITSA)

The rollout of MTD for ITSA will begin in phases starting in April 2026. Affected individuals and landlords will need to keep digital financial records and submit quarterly updates to HMRC through approved software. The traditional Self-Assessment return will be replaced with a digital year-end finalization within the software.

Implementation Timeline:

• April 2026 – Individuals and landlords with gross income over £50,000

• April 2027 – Individuals and landlords with gross income between £30,000 and £50,000

• Date TBC – Partnerships and those earning below £30,000 will be included at a later stage

This new process will provide in-year tax estimates, helping taxpayers plan more effectively.

✅ MTD for Corporation Tax (MTD for CT)

Although previously anticipated to start in 2026, HMRC has signaled a delay to focus on rolling out MTD for Income Tax first. We continue to track developments and will inform clients as updates become available.

✅ How Prime Taxation Supports You

We help you prepare for and adapt to MTD with tailored, practical solutions:

• MTD readiness assessments – Reviewing existing systems and identifying required changes

• Software selection and implementation – Advising on and setting up HMRC-approved digital tools

• Training and guidance – Supporting your team with digital record-keeping and reporting

• Ongoing compliance support – Assisting with quarterly submissions and year-end digital processes

By partnering with our experienced advisors, you can manage the transition confidently, maintain compliance, and minimize disruption to daily operations.

Get in touch to discuss your MTD requirements and discover how we can support your digital tax journey.