MTD

Making Tax Digital (MTD) for Income Tax is the biggest overhaul of the tax system in decades.

As such, it is vital that you understand how your obligations may be changing and what must be done to stay compliant.

Our experts will help you prepare for MTD so that the new system does not leave you facing penalties.

Get in touch to find out how to become MTD confident today.

What is needed for MTD?

MTD for Income Tax is set to impact sole traders, self-employed individuals and landlords in staged increments based on their annual income.

When MTD for Income Tax applies to you, you will need to:

MTD penalties operate on a point-based system, with every missed deadline netting you a penalty point.

A £200 penalty will be enforced after you get two points for annual filings and/or four points for quarterly filings.

Any further missed annual filings will also face a £200 fine.

Points reset when outstanding submissions are filed and after 12 months of compliance with quarterly filings and 24 months for annual ones.

The penalties will take effect from April 2027, but it is still worth being compliant before that point.

Getting ready for MTD means going through your current systems and making sure they are suitable.

We can help you review your current standing so that you can approach your new obligations with confidence.

If you are unsure about the MTD-compliant software you need, we can help match you to one that is right for you.