What is Making Tax Digital (MTD) for Income Tax?
MTD for Income Tax is the requirement for certain individuals with self-employment and/or property income to:
1.Keep digital records of income and expenses
2.Submit quarterly updates of income and expenses totals from an MTD compatible program
3.Submit a final declaration of income tax to HMRC from an MTD compatible program at the end of the tax year
VT users can submit quarterly updates from either:
•VT Transaction+
•VT Cash Book
•VT Report
•VT MTD for Excel
If you do your bookkeeping in VT Transaction+ or VT Cash Book, you should submit quarterly updates directly from those programs. VT Report and VT MTD for Excel are intended for users who keep their records on spreadsheets.
Make sure you have downloaded the latest version of the software to use the MTD for Income Tax features.
How many quarterly updates do you need to submit?
You are required to submit a set of four quarterly updates in a tax year for each of the income types below:
•Self employment (one set for each business you own)
•UK property (one set for total UK property income)
•Foreign property (one set for each foreign property you own)
See also: Multiple businesses.
General information on MTD
General information on MTD for Income Tax can be found on the MTD for Income Tax homepage.
