Making Tax Digital

What Is MTD?

Making Tax Digital — or MTD — is a new way for self‑employed people and landlords to keep records and report income to HMRC. It’s a big shift, but the idea is simple: move from paper and manual systems to fully digital reporting.

Under MTD, you’ll use compatible software to record your income and expenses, keep digital copies of receipts, and send updates to HMRC throughout the year. It’s designed to make tax reporting more accurate and more efficient.

Instead of one annual tax return, MTD introduces quarterly updates, followed by a final declaration at the end of the tax year. Your software handles most of the process — you just keep your records organised and up to date.

There will also be new rules around deadlines and penalties, so staying consistent with your digital records is key.

If you’re unsure how MTD will affect you, speak to an accountant or visit trusted guidance online. With the right tools, MTD becomes a straightforward part of running your business.