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Spring Statement for small businesses: growth forecast, MTD updates and tax fines
The government announces plans for MTD for Income Tax exemptions, higher fines for late tax payments ... Read more
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?
April 2022
MTD for VAT applies to all VAT-registered businesses
April 2026
MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £50,000
April 2027
MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £30,000
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 VAT?
MTD for VAT requires all VAT-registered businesses to keep digital records and use MTD-compatible software to submit VAT returns electronically.
MTD for VAT with FreeAgent
FreeAgent's MTD-compatible accounting software allows you to submit MTD VAT returns directly to HMRC. Just follow these simple steps.
Step one
Register
Register for Making Tax Digital for VAT on HMRC's website and sign up to FreeAgent.
Step two
Connect
Connect your FreeAgent account to HMRC's Making Tax Digital service.
Step three
File
Get your business’s accounts ready and file your first MTD VAT return.
FreeAgent is jargon-free, easy to use and MTD-compatible. Go solo or work with an accountant or bookkeeper for total peace of mind.
Try FreeAgentWhat 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.
The latest Making Tax Digital news and events
Read more about Making Tax Digital on our blog
Making Tax Digital for Income Tax confirmed for 2026 - here’s how to get ready
Government confirms MTD for Income Tax will start rolling out in just 18 months. Find out what prepar... Read more
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Guides to Making Tax Digital for small businesses
Guide
MTD for Income Tax: what does it mean for you? Learn what's changing under MTD for Income Tax and find out what the new rules mean for you.
Guide
Making Tax Digital: what does it mean for your business? Read our overview of the MTD initiative and discover how it will affect your business.
Guide
MTD for Income Tax: what landlords need to know Find out everything landlords need to know about Making Tax Digital (MTD) for Income Tax.
Guide
Making Tax Digital: 8 common myths busted Sort the fact from the fiction as we clear up eight of the most common myths about MTD
Guide
MTD for VAT penalties Find out what penalties you might face if you fail to comply with the new legislation.
Guide
Making Tax Digital jargon buster Find out what some of the words and phrases from the MTD lexicon really mean.
Guide
Everything you need to know about digital record keeping Learn more about the benefits of digital record keeping.
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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