Making Tax Digital (MTD) is a UK government initiative that aims to modernize the tax system by requiring businesses and individuals to use digital tools to manage their tax affairs. MTD is being introduced gradually, with different requirements applying to different types of taxpayers and taxes.

Under MTD, businesses and individuals will be required to use digital tools, such as online tax accounts and software, to keep records of their income and expenses and to submit their tax returns. The goal of MTD is to make it easier for businesses and individuals to manage their tax affairs, to reduce errors and compliance costs, and to improve the accuracy and efficiency of the tax system.

MTD will apply to different taxes at different times. For example, VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) are required to use MTD to file their VAT returns starting from April 2019. Other taxes and groups of taxpayers will be brought into the MTD system at a later date.

If you are a business owner or an individual in the UK, it is important to understand the requirements of MTD and to ensure that you are in compliance with the relevant laws and regulations. If you have questions about MTD or need help with your tax affairs, you can contact HM Revenue and Customs (HMRC) for assistance.