Making Tax Digital (MTD) aims to make it easier and more efficient for businesses and individuals to record and declare tax to HMRC. Under the new rules, HMRC will legally require eligible businesses to record transactions digitally and submit returns to HMRC using compatible accounting software. 

Here’s what you need to do to get ready for MTD changes. 

There are two deadlines that small businesses and sole traders need to be aware of.

All VAT-registered businesses must now comply with the new rules for VAT returns starting on or after April 2022.  Businesses can already sign up for MTD and start following the new system now. The new rules won’t change your normal VAT return deadlines or the information you need to send.

In April 2024, self-employed businesses and landlords with annual