How to comply with Making Taxes Digital UK scheme

The difference between how much tax should be paid and how much is actually collected is called the ‘tax gap’. A 2024 report estimated it at almost £40bn. Making Tax Digital for Income Tax (MTD) is part of the government’s strategy to reduce the gap. It introduces requirements for businesses to keep digital records and submit information to HMRC in closer to real-time. 

According to David Wright, a technical officer at the Association of Taxation Technicians (ATT), MTD applies to unincorporated businesses – sole traders and the self-employed – and landlords and will be introduced in phases. Self-employed optometrists and locums are squarely in the firing line of the regime.