Making Tax Digital (MTD) Guide 2026
This guide covers the UK's Making Tax Digital (MTD) requirements for VAT in 2026. Learn about digital record keeping, compatible software, and how to stay compliant with HMRC rules.
What is Making Tax Digital?
Making Tax Digital is a UK government initiative requiring businesses to keep digital records and submit VAT returns using compatible software. The goal is to make tax administration more effective and efficient.
Who Must Comply?
- All VAT-registered businesses in the UK (unless exempt)
- Turnover above the VAT threshold (£85,000)
- Voluntary compliance encouraged for smaller businesses
Key Requirements
- Keep digital records of sales and purchases
- Use MTD-compatible software to submit VAT returns
- Maintain digital links between records and submissions
FAQs
Q: What software is compatible?
A: HMRC provides a list of approved MTD software on their website.
Q: Are there penalties for non-compliance?
A: Yes, penalties apply for late or incorrect submissions.
Q: Where can I get more help?
A: Visit the HMRC MTD software list or contact a tax advisor.
A: HMRC provides a list of approved MTD software on their website.
Q: Are there penalties for non-compliance?
A: Yes, penalties apply for late or incorrect submissions.
Q: Where can I get more help?
A: Visit the HMRC MTD software list or contact a tax advisor.