Making Tax Digital

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Making Tax Digital supports HMRC’s plans to digitalise the tax system. It will:

• make it easier for individuals and businesses to get their tax right
• mean customers can integrate tax management with a range of business processes through software
• contribute to wider productivity gains for businesses by encouraging digitalisation

It will help reduce the amount of tax lost to avoidable errors due to the:

• improved accuracy of digital records
• additional help built into many software products
• digital records being sent directly to HMRC

HMRC recently published evidence of Making Tax Digital reducing the tax gap.

Find out more about how businesses have benefitted first-hand from Making Tax Digital.

If you have a VAT registered business, you are now required to keep digital records and file your tax returns using compatible software.

HMRC will sign up all remaining businesses to Making Tax Digital for VAT automatically unless they are exempt or have applied for exemption.

You should now find software that works with Making Tax Digital for VAT.

If you’re an agent, you should follow the Making Tax Digital for VAT step by step guide for agents.

You need to follow the requirements for Making Tax Digital for Income Tax if you are self-employed or a landlord from:

• 6 April 2026 if you have an annual business or property income of more than £50,000
• April 2027 if you have an annual business or property income of more than £30,000

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital for Income Tax. If you are a self-employed business or landlord, check if you can voluntarily sign up now through your software provider.

If you’re signing up your own business, you should use the step-by-step guide for Making Tax Digital for Income Tax to get started.

If you’re an agent, you should follow the Making Tax Digital for Income Tax step by step guide for agents.