MTD or Making Tax Digital is a new approach to tax and accountancy from HMRC and the government. It has neem brought in to make it easier for a company or individual to make sure all records are kept correctly and that tax is right. As well as being easier, MTD is more efficient and effective.
This was first mentioned in the 2015 budget and has since been outlined. As of April 1 2019, companies who meet the VAT registered threshold (£85,000) will need to provide quarterly reports on turnover.
If you meet this threshold, then you must follow MTD rules from the first day of your first VAT period on or after April 1 2019. Once this date has passed, you won’t be able to manually complete VAT return online. Over time the vision is to switch all businesses towards Making Tax Digital. This will help to reduce time spent completing returns and also improve on the number of mistakes made.