HMRC is overhauling the entire UK tax system and Making Tax Digital (MTD) is just the beginning. In essence, MTD means the end of the annual tax return for most tax payers, replacing it with the filing of information through a fully digitised system.

Every tax-payer will be allocated a digital tax account through the current Government Gateway. It will become a requirement to use digital (Cloud) software to maintain your business records and to provide updates of information to HMRC each quarter.

The short answer is: probably, yes. The changes will apply to a wide range of taxpayers, including most businesses, self-employed professionals, and landlords.

As part of the March 2017 Budget to the Making Tax Digital consultation, the Government confirmed the key start dates as:

• April 2018 for income tax reporting for the self-employed and unincorporated property businesses with turnover above £85,000
• April 2019 for VAT reporting
• April 2020 for corporation tax reporting and income tax reporting for partnerships with turnover exceeding £10 million