The UK Is Making Tax Digital: What It Means for You
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As HMRC continues to roll out its Making Tax Digital (MTD) initiative, UK taxpayers—particularly the self-employed, landlords, and small business owners—need to be aware of how these changes will affect the way they report and manage their tax affairs.
Sam from ProACT breaks down the key changes and what they mean as we move into a more digital future.
What’s Changing?
The UK tax system is shifting away from annual paper-based returns toward more frequent, digital submissions. The new system is currently in beta this year and will be fully implemented next year. Once live, taxpayers will be required to keep digital records and submit updates to HMRC every quarter using approved software.
How to Stay Compliant
Compliance under MTD means:
Maintaining digital records of income and expenses
Using HMRC-recognised software to submit quarterly returns
Submitting an annual final declaration after the year ends
This represents a significant change in workflow for many, especially those who’ve been used to managing tax manually or relying on once-a-year filings.
ProACT’s Tips to Plan Ahead
Start Early – Don’t wait for the full rollout. Begin setting up your systems now, while MTD is still in beta.
Choose the Right Tools – Use accounting software that’s fully compliant with MTD requirements.
Stay Organised – Quarterly submissions mean your records need to be up to date throughout the year, not just at year-end.
Get Advice – Speak to an advisor early to avoid last-minute stress and potential penalties.
Why This Matters
MTD isn’t just about ticking boxes—it’s part of a broader digital shift that will shape how individuals and businesses interact with HMRC going forward. It’s also a signal that the days of paper records and last-minute tax returns are coming to an end.
For help or guidance on preparing for Making Tax Digital, contact us.
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