MTD is a comprehensive set of changes initiated by HMRC and staggered over a few years with one aim - "to become one of the most digitally advanced tax administrations in the world."
How does this translate in real life?
MTD for VAT is already in place for VAT registered businesses. These businesses need to follow the new rules for MTD which include using dedicated MTD complaint software and maintain a digital record of the VAT filings. Every filing is mapped with a complete set of digital data that can be readily verified.
MTD for Income Tax - From 06th April 2026, self employed businesses and landlords with property income in excess of £50,000 will need to follow the MTD rules for Income tax.
MTD for Corporation Tax - This is still some distance away and will not be mandated until April 2026. The scope and effect of these changes would be widespread and neither businesses, the accounting profession, IT providers or the HMRC is quoite ready yet. Consultations would be the first step to garner opinion and chalk out a roadmap to these changes.
Digicounts uses fully compliant MTD software, will be one step ahead of the next curve and research and invest its efforts to incorporate the best possible technologies to fulfil its aim to take a Digital First approach. Clients would benefit from streamlined processes, time and cost savings, increased efficiency and timely compliance.
“Every industry and every organization will have to transform itself in the next few years. What is coming at us is bigger than the original internet, and you need to understand it, get on board with it, and figure out how to transform your business.” — Tim O’Reilly, Founder & CEO of O’Reilly Media
