Say goodbye to spreadsheets. Keep your data safe, automate your processes, and stay MTD-ready. Going digital has never been so simple.
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Learn more about Making Tax Digital (MTD) and what HMRC's new scheme means to your business and discover the steps you need to take to submit returns.
For more MTD knowledge and advice, check the FAQs below or visit our Sage Advice section on everything MTD for VAT.
Right now, only UK VAT-registered businesses are affected by MTD. However, there’s a goal for all UK businesses to comply in future.
April 2022: MTD will apply to VAT registered businesses with taxable turnover
April 2026: Businesses, self-employed individuals, and landlords with an income over £50,000 will need to follow MTD for Income Tax Self Assessment rules from their next accounting period.
April 2026: The earliest possible date for MTD for Corporation Tax after the government announced it wouldn’t be mandated before then.
April 2027: MTD for Income Tax Self Assessment will then apply for businesses, self-employed individuals, and landlords with income over £30,000.
With MTD-compatible software you can:
From April 2022, all VAT registered businesses with taxable turnover need to start using Making Tax Digital software so that they can submit tax returns digitally.
It’s simple to connect our accounting software for making tax digital to HMRC. When you go to complete your VAT return in Sage Accounting you’ll have the option to authenticate with HMRC in 3 simple steps:
The first phase of MTD started in April 2019, mandating that most VAT registered businesses with taxable turnover over £85,000 keep digital tax records. The next phases of MTD include:
April 2022: MTD for VAT will be extended to all VAT registered businesses, including those below the VAT threshold.
April 2026: The mandation of MTD for Income Tax Self Assessment will be introduced from April 2026, with businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first.
April 2026: The earliest possible date for MTD for Corporation Tax after the government announced it wouldn’t be mandated before then.
April 2027: MTD for Income Tax Self Assessment will then apply for businesses, self-employed individuals, and landlords with income over £30,000.
You can still use Excel spreadsheets to calculate VAT but you won’t be fully compliant with MTD. VAT returns have to be submitted through Making Tax Digital compatible software like Sage Accounting or using bridging software that creates a link between spreadsheets and HMRC’s systems.
Sage Accounting helps you meet MTD regulations and it simplifies VAT returns. By swapping your spreadsheets for digital records that are stored in one place and by automating your admin, you can save valuable time. Automatically calculate tax, submit returns straight to HMRC, and use data straight from the bank so that you know your data is always accurate and up to date.
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