What Making Tax Digital means for your filing.
Making Tax Digital (MTD) is HMRC's move towards digital record-keeping and more frequent reporting for Income Tax. Here is what changes, and how MyTaxFiling is preparing to support it.
The basics
Three things that change.
MTD for Income Tax applies to sole traders and landlords with qualifying income above set thresholds, phasing in over time.
Quarterly updates
Instead of one annual return, qualifying sole traders and landlords submit summaries of their income and expenses to HMRC throughout the year.
Digital records
Records are kept digitally, in software that can connect to HMRC, rather than in paper files or ad-hoc spreadsheets.
End-of-year declaration
After the quarterly updates, a final declaration confirms the full picture for the tax year, including anything not covered by the quarters.
Rules, thresholds and dates are set by HMRC and can change. Always check the latest guidance on GOV.UK before making decisions about your filing.
What it means for you
Staying on top of it gets simpler.
Under MTD, records need to be kept digitally and updated regularly. That is what MyTaxFiling already encourages: capture receipts and income as you go, keep everything in one place, and review your running estimate through the year rather than facing it all at deadline time.
How MyTaxFiling helps
- Digital records from day one, receipts and income captured in the app
- A running tax estimate as your figures change
- Organised income sources, ready for regular reporting
- Plain-English guidance at each step