Making Tax Digital (MTD)

Making Tax Digital deadlines - key dates to know

Key dates for Making Tax Digital 


Key dates for Making Tax Digital 

Deadlines can cause stress but don’t worry, here we explain the MTD deadlines that are coming up so you can stay compliant.

  • April 2022: MTD for VAT was extended to all VAT-registered businesses, including VAT voluntary registered businesses. This means that in order to be MTD for VAT compliant, any business or individual will have to:
    • Sign up to Making Tax Digital
    • Keep their records digitally
    • Submit their VAT return information to HMRC through MTD compatible software

It’s important to mention that this includes businesses below the £85,000 VAT registration threshold. Lots of other VAT registered businesses have already complied. All you need is MTD for VAT compliant software, like Powered Now,  which will then link your business's data digitally to your VAT return.

 

Have you tried Powered Now?

Powered Now fully supports MTD for VAT. 

Book a demo today

 

  • January 2023: The new Making Tax Digital penalty points system will come into effect. This means that those who regularly make mistakes and/or miss deadlines will earn penalty points. At a certain threshold of points, a financial penalty of £200 will be applied.
     
    • Annual: 2 points
    • Quarterly: 4 points
    • Monthly: 5 points

 

  • April 2024: Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will take effect. All self-employed people and landlords with sales of over £10,000 must register for Making Tax Digital for Income Tax Self Assessment. Exemptions from MTD for ITSA include: non-resident companies; trustees, executors and administrators; and foreign businesses of non-UK domiciled individuals.


All businesses will have to provide quarterly updates and the deadlines for quarterly returns under MTD for ITSA will be:
    • August 5 for the period from April 6 to July 5
    • November 5 for the period from July 6 to October 5
    • February 5 for the period from October 6 to January 5
    • May 5 for the period from January 6 to April 5

 

  • April 2025: MTD for ITSA will apply to partnerships with income over £10,000 per year. Also in April 2025, the penalty system will also be extended to MTD for ITSA users.

 

  • April 2026: Making Tax Digital for Corporation Tax (CT) to be introduced. In other words, this is MTD for limited liability companies. However, this date is not 100% confirmed. This is the last tax to become digitalised. 


How to prepare for MTD for VAT

Preparing for Making Tax Digital for VAT, is really simple. You’ll just need to follow these steps:

  • Select a compatible software for MTD for VAT, like Powered Now
  • Sign up for MTD for VAT
  • Activate that feature in your MTD for VAT software (if you are using Powered Now, do not hesitate to contact us if you have any questions)
  • Keep digital records starting from 1st April 2022 or the beginning of your VAT period
  • Submit your VAT return through Making Tax Digital

 

MTD Deadlines Infographic

 

Questions?

We are happy to help. If you have any questions, you can contact us or leave a comment below and we will answer as soon as possible.

 

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