What is Making Tax Digital?
Starting in April 2019, the government's Making Tax Digital (MTD) initiative brought important changes to the way in which businesses report their VAT information to HMRC.
MTD doesn't change what you submit to HMRC, it changes how you submit it.
MTD aims to provide businesses the ability to keep records of their income and expenditure digitally, and to send VAT summary updates to HMRC from their software. In turn, this provides a more timely, efficient and simpler tax system, reducing the likelihood of errors and giving businesses more certainty of their position throughout the year.