When does MTD start?

Key facts:

MTD for VAT started for compulsorily registered VAT businesses for the first VAT return done on or after 1st April 2018.

The “soft landing period” that provided an exception to the strict use of digital records directly driving the MTD VAT return and allowing using ‘copy and paste’ came to an end on 1st April, 2022.

Fuller explanation:

Other phases of MTD are coming in as follows:

• April 2019, MTD will cover all businesses that pay VAT (that weren’t included in the first VAT deadline);
• Income Tax for Self Assessment (sole trader businesses with Sales over £50,000 per annum) moved back to April 2026 and those with sales over £30,000 to 2027 (delay announced in December 2022)
• Corporation Tax for all companies comes in later with the previous deadline of April 2028 at the earliest is likely to be moved back a long way.

Additional useful information

• What are the penalties for non-compliance with MTD?
• MTD for Income Tax Self Assessment – what it means for your business