Latest News About Making Tax Digital

Here’s the latest on Making Tax Digital (MTD) relevant to the UK, based on current public updates up to 2025–2026.

• What MTD is moving toward: The UK government continues to push for more tax records to be kept digitally and for quarterly updates to HMRC, with the aim of reducing the need for annual paper returns and improving real-time compliance. Recent guidance emphasizes continued expansion of MTD ITSA (Income Tax Self Assessment) testing and broader mandatory go-live plans for individuals and businesses as software compatibility and timelines align.[2][4]

• MTD ITSA testing opportunities: For 2025/26 and beyond, taxpayers liable for the high income child benefit charge (HICBC) or those with income from jointly held property can join the MTD ITSA testing program, with sign-up options for 2024/25 or 2025/26 as part of the phased rollout. The testing window is designed to help users acclimate to quarterly updates and the eventual end-to-end software journey.[2]

• Milestones and next steps for VAT and other taxes: While VAT has seen earlier adopters under digital linking requirements, the broader mandate for all eligible taxes continues to be refined. HMRC has highlighted that a fully digital, end-to-end filing path for ITSA is part of the longer-term design, with the expectation that more taxpayers will move onto MTD-compliant software and away from paper/self-serve portals for year-end declarations.[3][4]

• Corporate tax and other reforms: There has been coverage of developments that some sectors anticipated or discussed, including potential adjustments to MTD for corporation tax. However, sources indicate that HMRC’s current public messaging remains focused on extending MTD ITSA and related digital record-keeping across income tax and self-assessment, rather than a universal, immediate switch for all taxes. Check current HMRC updates for any changes to corporate tax rules.[6][8]

• How to prepare if you’re affected: If you’re in scope (or anticipate being in scope as the regime expands), start by:

  • Ensuring your bookkeeping is digital and compatible with MTD software.
  • Verifying your software provider supports MTD ITSA requirements and quarterly updates.
  • Signing up for official testing windows when invited (to avoid penalties when mandation occurs).
  • Tracking HMRC announcements and the Finance Bill provisions for any changes to timelines or scope.[4][5][2]

Illustrative note: For readers in Lombardy or Italy, this UK-focused update may not map directly to Italian digital tax rules. If you’re seeking how digital tax reporting is evolving in Italy, I can summarize Italian rules separately. [no citation needed for this localization note]

Would you like a concise timeline of upcoming MTD ITSA milestones and how to prepare your accounts step by step? I can also tailor guidance to whether you’re self-employed, operate a small business, or manage property incomes.

Citations:

• “More taxpayers can test making tax digital” – ICAEW/FT article, Feb 2025[2]
• “Fully digital filing: End-of-year returns via software only” – ICAEW/ICAS update, Sept 2024[4]
• “Learn more about making tax digital” – ICAEW, Jan 2025[5]
• General MTD ITSA updates and testing guidance – multiple sources in 2024–2025[4][2]