Making Tax Digital
Digitising tax compliance
Making Tax Digital (MTD) is the long-term project to modernise the UK tax system and to bring tax compliance fully into the digital age. The ultimate goal is for all regular transmissions of data between taxpayers and HMRC to be performed digitally, and where possible automatically, through accounting software.
This will take many years to achieve. HMRC needs to improve its own internal systems and provide new digital services to taxpayers for full digitisation of the tax system to be achieved.
MTD for business is being introduced tax by tax, not by business size or type. Eventually, each business will have to submit separate MTD reports for the taxes it pays to HMRC.