Making Tax Digital (MTD) is the government's initiative to digitise record keeping and increase reporting for businesses in the UK.
The aim of MTD is to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
All VAT-registered businesses, regardless of turnover, now need to submit MTD VAT tax returns directly to HMRC.
If you're submitting MTD VAT returns for the first time, don't panic! Clear Books is HMRC recognised software that ensures you comply with the rules. Create, review and submit VAT returns in just 3 simple steps with our HMRC recognised software.
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is the next stage of the MTD rollout.
From April 2026, individuals and landlords will need to follow the rules and submit returns digitally to HMRC. If your revenue is less than £50,000 per year you have another year to prepare, having until 2027 to be compliant. If your revenue is less than £30,000 per year, the review by HMRC due in summer 2023 will outline the dates that affect you.
While waiting for MTD to arrive, you can use Clear Books for your Self Assessment income tax return for your self employment and landlord income. That way, when MTD ITSA becomes mandatory, being compliant will be that much easier.
We have already rolled out updates to prepare Clear Books for future Self Assessment support and this remains a key focus for us.
Check out our latest MTD Insights
Be the first to know about our latest MTD news and insights by registering for updates.
Clear Books is award-winning online accounting software designed for UK small businesses.
Clear Books, accredited by The Institute of Certified Bookkeepers and registered with the Financial Conduct Authority (reg. no. 843585), delivers valued, comprehensive online accounting software for small businesses in the UK.