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With Sage you're MTD ready

Making Tax Digital for accountants and bookkeepers

Nail the next wave of MTD. With Sage Accounting you and your clients are MTD for VAT ready, and we’re working with HMRC to help you boss MTD for ITSA. Be on it — sign up for our regular MTD webinar for immediate support and book your free MTD consultation to get ahead of the game.

Sage is MTD ready. Are you?

The UK is our home, so we understand UK legislation, UK tax and UK accounting. As experts in compliance for 40 years, we’re the trusted partner of over 14,000 UK practices and more than one million UK businesses. We’re HMRC recognised and we’ve got your back to help you manage the impact of Making Tax Digital—with the best technology, support and expertise every step of the way.

Get the help you need right now by joining our regular MTD webinar. For more support, request your free MTD consultation.

Prepare for MTD

Register for our regular webinar to get the edge from our experts on how to prepare for Making Tax Digital. Learn about the latest changes from HMRC and how we can help you get ready.


  • Find out more about what the proposed legislation means
  • Understand when and which clients will be impacted
  • See why taking small steps now will help you boss MTD
  • Know how Sage will support you and your clients at every stage

Free MTD consultation

Your free MTD consultation will help your practice and clients navigate the next steps in Making Tax Digital.


  • We’ll help you nail your plan so you’re ahead of the game
  • You’ll get all the support you need to boss the next steps
  • Together we’ll get you started so you can smash through the deadlines
  • Look beyond MTD to see how software can bring big benefits to the rest of your practice

MTD timeline

MTD: small business solutions for accounting and tax

Stay compliant with Making Tax Digital—our software is purpose-designed to help small businesses boss bookkeeping and get tax done, with the security and convenience of cloud, and the expert support to keep you in control.

   

Sage Accounting

Manage invoicing, cash flow, tax, payments and more from any device, through the cloud.

Accounts production and tax solutions

Manage compliance and minimise redundancies. Utilise accurate information provided directly through HMRC and final accounts.

Download our Making Tax Digital guide

Get our guide and get to grips with all the insight you need to boss Making Tax Digital for your practice and clients.

MTD toolkit for your practice

Toolkit

Get the latest free MTD resources and support from Sage, including templates to help you segment your clients and start your communications to those impacted by Making Tax Digital.

MTD FAQs

Get the answers to the common questions we receive about Making Tax Digital. For more details read our Sage FAQ articles for VAT and ITSA.

Making Tax Digital is the UK government’s flagship programme to improve and enhance the efficiency and simplicity of tax administration for businesses and customers. The changes apply to a wide range of taxpayers, including most businesses, self-employed people and landlords, as well as individual taxpayers. MTD legislates the digitisation of tax record keeping and submission for the three major types of tax: VAT (completing in April 2022) , Income for Tax Sole traders and Landlords (April 2024), Income Tax for General Partnerships (April 2025), and Corporation Tax (scheduled for April 2026). The date at which all other types of partnerships will be required to join will be confirmed later.

Yes. Since the first wave of MTD for VAT (above the £85,000 VAT threshold) in 2019 we’ve had thousands of UK practices and small businesses filing their VAT returns through our Sage Accounting cloud software. And if you and your clients are using our Sage 50 desktop software, then as long as you’ve installed and activated v24.2 or later then you’re compliant with MTD for VAT.

Psst…migrating from Sage 50 to Sage Accounting means you’re fully setup in the cloud, so no more updates to ensure you’re on the latest version. Contact our expert team to discuss moving your Sage 50 clients to Sage Accounting.

All VAT registered businesses will need to be signed up to MTD for VAT by 1 April 2022 unless HMRC have approved that the VAT registered business is exempt.

Making Tax Digital for Income Tax Self Assessment applies to businesses with income greater than £10,000 per year from:

  • Self-employments
  • Property businesses (UK and overseas)
    • These clients will need to follow the rules for MTD for ITSA from their first accounting period that starts on or after 6 April 2024.
  • General partnerships with only individuals as partners
    • These clients will not be required to join MTD for ITSA until the tax year beginning in April 2025. The date at which all other types of partnerships will be required to join will be confirmed later.

These clients will need to follow the rules for MTD for ITSA from their first accounting period that starts on or after 6 April 2023.

This legislative change does not apply to the following:

  • Other types of partnership, including Limited Liability Partnerships (LLPs), that are not general partnerships with only individuals as partners
  • Trusts and estates
  • Trustees of registered pension schemes
  • Non-resident companies

The types of clients mentioned above are exempt from the current digital requirements under MTD for ITSA and will continue to complete and file a Self-Assessment tax return if required. This will be the case until such time as the government mandates their use of MTD for ITSA.

The government has said it will not mandate MTD for CT before 2026. Many have interpreted this as implying the first wave of MTD for CT will be introduced in April 2026. But this is far from certain, and the government has postponed MTD scheme introduction dates several times in the past (often several times).

Sign up for Sage Making Tax Digital updates

We’ll keep you up-to-date on all of the latest Making Tax Digital news, resources and updates for your practice and clients. Sign-up for our e-newsletter below.

Making Tax Digital. You’re ready with Sage

With 40 years of compliance expertise, we're right with you to help you and your clients boss the MTD transition. We’re working closely with HMRC and UK Government to represent UK businesses, and will keep you updated as the requirements become clearer. Got any questions?

**Trustpilot score accurate as of October 27th 2020

Disclaimer

Sage is providing this hub for organisations to use in relation to Making Tax Digital. Sage works hard to make sure the information is correct and valid at the time of publication but as it is general guidance, no guarantees can be made regarding its suitability for your particular needs. While Sage strives to keep all supplied information up-to-date and accurate, it makes no representations or warranties of any kind--express or implied--about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

The information contained within this hub is provided for informational purposes only, rather than specific guidance, and is not intended to be a substitute for professional advice. Sage assumes no responsibility for any errors or omissions in the hub or any further action taken on the basis of the hub.  Any reliance you place on the information contained within the hub is, therefore, strictly at your own risk. In using the information as provided in the hub, you agree that Sage is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.