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‘Making Tax Digital’ Guide 

By now you will have seen an exhausting amount of adverts concerning HM Revenue and Custom’s ‘Making Tax Digital’ (MTD). First announced in the 2015 Budget, MTD is the government’s aim of achieving the most digitally advanced tax system in the world and has been constantly evolving it since its announcement. Below is a brief guide on the changes you may see now and in the future.

The idea is that business owners will no longer be able to manually pay tax and submit VAT returns manually via pen, paper and post – a process that HMRC says causes over £9bn worth of tax to be “lost” every year due to human error. By human error, HMRC mean inputting figures manually through your Government Gateway account.

HMRC estimate that MTD will contribute over £1bn to the Exchequer by 2022/23.