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    Making Tax Digital explained

    MTD is HMRC’s move to digital, software-based tax records. Here is what it means for you.

    By the Happy Wallets team·Updated June 2026·4 min read

    The idea

    Making Tax Digital requires keeping records and submitting certain taxes through compatible software rather than paper or manual returns. It already applies to VAT and is being extended.

    What to do

    Use MTD-compatible accounting software so your records and submissions are handled automatically. Most modern packages support it.

    Frequently asked questions

    Does MTD apply to me?+
    It depends on your taxes and turnover, and the rules are being phased in — check the current scope on GOV.UK.
    Accounts are coming soon — the site is in build