MTD is being introduced for businesses earning over the current VAT threshold (£85,000). Making tax Digital is the governments plan to help make tax submission more efficient, accurate and easier for UK taxpayers to manage. VAT registered businesses will be required to record all of their bookkeeping digitally and to submit their VAT returns using an MTD software instead of through the HMRC portal.
When should I start submitting MTD?
Businesses affected by MTD will have to start submitting via MTD-compatible software after 1st April 2019. Accounting periods before this date will not fall under MTD.