Making Tax Digital: what it is and how to get ready

Making Tax Digital, or MTD, is HMRC's long-running push to move tax record-keeping and reporting online. If you've heard the term and quietly hoped it would go away, here's the plain-English version.

The idea in a nutshell

Instead of pulling everything together once a year, MTD asks you to keep your records digitally and send HMRC updates more regularly using compatible software. It's already in place for VAT, and it's being rolled out to income tax for the self-employed and landlords in phases.

How to get ready

• Get onto proper accounting software like Xero, rather than a shoebox of receipts.
• Keep your records up to date through the year, not in a last-minute scramble.
• Check which phase and start date applies to you, as it depends on your income and type of business.

The takeaway: MTD sounds daunting, but with the right software and a bit of routine it actually makes life easier. We'll get you set up and keep you compliant well ahead of any deadline.