What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC's long-running programme to move tax record-keeping and submissions online. MTD for VAT has been mandatory for all VAT-registered businesses since April 2022, requiring compatible accounting software to maintain digital records and file returns. MTD for Income Tax Self Assessment (ITSA) is planned for April 2026 for self-employed people and landlords with qualifying income above £50,000, with lower thresholds phased in subsequently. Businesses must use HMRC-recognised software and cannot use spreadsheets as a standalone solution.