Making Tax Digital - FreeAgent has you covered

Find out everything you need to know about Making Tax Digital, including whether the legislation applies to you, key deadlines and what you need to do to comply.

How FreeAgent can help

Accountant or bookkeeper? Visit our Making Tax Digital information hub for a range of resources.

What is Making Tax Digital?

Making Tax Digital (MTD) is the government's initiative to implement a fully digital tax system in the UK, whereby taxpayers keep digital records and use MTD-compatible software to make tax submissions electronically.

When's it happening?

  1. April 2022

    MTD for VAT applies to all VAT-registered businesses

  2. April 2026

    MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £50,000

  3. April 2027

    MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £30,000

  4. April 2028

    MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £20,000

What do you need to do?

To comply with Making Tax Digital legislation, you need to use MTD-compatible software to keep digital records and make submissions to HMRC electronically.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax, previously known as 'MTD for Income Tax Self Assessment' or 'MTD for ITSA', will replace the current system of annual Self Assessment tax returns. MTD for Income Tax will come into effect in April 2026 for self-employed individuals and landlords with income of more than £50,000, in April 2027 for those with income over £30,000, and by 2029 at the latest for those with income over £20,000.

MTD for Income Tax with FreeAgent

FreeAgent is on HMRC's list of compatible software for MTD for Income Tax for businesses. This means that if you're a business owner, you'll be able to use FreeAgent to follow the rules of MTD for Income Tax and make the required tax submissions.

FreeAgent is jargon-free, easy to use and MTD-compatible. Go solo or work with an accountant or bookkeeper for total peace of mind.

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The latest Making Tax Digital news and events

Read more about Making Tax Digital on our blog

Guides to Making Tax Digital for small businesses

Accountant or bookkeeper? Visit our Making Tax Digital information hub for a range of resources.

FreeAgent can help you prepare for Making Tax Digital

FreeAgent's powerful automation features can help get your accounts in order for digital filing with minimal hassle. Check out all the other ways FreeAgent can help you stay on top of your business finances.

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