Making Tax Digital (MTD) is intended to bring the UK tax system into the 21st century by providing individuals and businesses with a modern, streamlined system to keep their tax records and provide information to HM Revenue & Customs (HMRC).
Individuals and businesses are all starting to see the benefits of digitisation. Millions are already banking, paying bills and interacting with customers and suppliers online, this is the direction that the world is moving in and for many this is how we expect to work and interact. HMRC need to keep up with this transformation, so that everyone can start to enjoy the benefits that come with it. The actual change required to comply with MTD is that individuals and businesses must maintain digital records and they must submit data to HMRC using MTD compatible software.