Making Tax Digital (MTD) is HMRC's programme requiring businesses and individuals to keep digital records and submit tax information using compatible software rather than paper records or manual online forms.
Who it applies to
MTD is already mandatory for most VAT-registered businesses, and is being extended to sole traders and landlords with income above set thresholds for income tax, requiring quarterly digital updates to HMRC rather than a single annual return.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.