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← Glossary Business glossary

What is Making Tax Digital (MTD)?

A UK initiative requiring digital records and software for tax submissions.

MTD is HMRC’s move to digital tax: keeping records digitally and submitting via compatible software, rolling out across VAT and income tax.

The practical takeaway is that keeping your numbers in software, not a shoebox, is becoming the rule, not just good practice.

Related terms
VAT (Value Added Tax)A tax added to most goods and services, which some businesses must charge.Self AssessmentThe UK system for declaring untaxed income and paying tax on it.
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