‘Making Tax Digital’ (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world – ‘Making Tax Digital’ is about fundamental changes to the way the tax system works and transforming tax administration so that it is more effective, efficient and easier for taxpayers to get their tax right!
‘MTD’ is a fundamental change to the administration of the UK tax system. It will affect how businesses, other organisations, agents and individuals maintain their accounting and tax records and how they transact and communicate with HMRC. ‘MTD’ transformation projects are being run by HMRC but should be seen as just one element of the digitalisation of business
It is being said to be the biggest change to the administration of tax since the invention of PAYE some 50+ years ago.
The roll out was originally planned for 2018, but this deadline was extended by HRMC to the 1 April 2019.