MTD for Income Tax:
A comprehensive guide

Navigating the HMRC Making Tax Digital (MTD) for Income Tax can be a daunting task for businesses and accountants alike. We’ve designed this comprehensive guide to simplify the process, providing you with the insights and tools needed to ensure compliance and streamline your tax reporting. By reading this document, you'll gain a clear understanding of what MTD for Income Tax means for you and how you can take proactive steps to stay compliant. Dive in and empower yourself with the knowledge to navigate this significant shift in tax reporting.

This guide will help you:

• Understand the core principles. Learn about the fundamental objectives of MTD for Income Tax and how it aims to modernise tax reporting.
• Stay ahead of regulatory changes. Get up-to-date information on the latest compliance requirements and deadlines.
• Recognise the impact on businesses. Discover how these changes will affect your business and accounting practices.
• Follow best practices for compliance. Gain insights into the best practices for ensuring compliance and avoiding penalties.
• Implement a step-by-step guide. Follow a detailed guide to prepare for MTD for Income Tax, including setting up digital records and using compatible software.
• Know the new penalty regime. Understand the new points-based penalty system for late filing and how to avoid accruing penalty points.
• Participate in beta testing. Learn about the benefits of participating in the 2025-2026 Thomson Reuters Digita MTD beta testing and how it can give you a competitive advantage.