Making Tax Digital (MTD) Implementation Timeline

As explained in our other blog What is Making Tax Digital?, MTD is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for HMRC to administer.

HMRC’s aim is to use technology to speed up the collection information about the tax affairs of businesses and individuals.

For some background on MTD it may assist you to read the following of our blogs:

What is Making Tax Digital?

What is Making Tax Digital for Business (MTDfb)?

What Software Should I Use for MTDfb?


Implementation Timeline?

The original timeline for MTD has been completely ditched.

Originally, MTD for individuals was planned to go live first. The 2018 tax year was meant to see the end of Self-Assessment and the personal tax return.

However, due to difficulties in getting the right technology in place quickly enough, MTD for individuals has been postponed by HMRC and the precise timeframe is not currently clear.

Individuals should not think for one moment that MTD will not happen.

It will.

HMRC is committed to building one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply.

MTD will eventually happen for individuals.

Instead of implementing MTD for individuals first, HMRC has decided to press ahead with MTDfb.

It has been decided that MTDfb will be introduced in phases.

  • PHASE 1: From April 2019, businesses with a turnover in excess of the VAT registration threshold and who are VAT registered will be brought into the MTDfb regime but for their VAT affairs only
  • PHASE 2: Other components of MTDfb (for example corporation tax and income tax) have been placed on hold for introduction in April 2020 at the earliest. The timetable from April 2020 is not (at the time of writing) clear.

You can find out more about what is involved in Phase 1 of MTDfb by reading our other blog entitled What is Making Tax Digital for Business?

If you need any help understanding timeline for the implementation of MTD or MTDfb then please contact us for our advice.

E. H. Taylors

Accountants Southend


Written by Antony Holdsworth Bsc (Hons) FCMA

Owner of:

Antony J. Holdsworth & Co
E. H. Taylors – Southend Accountants
Clarence Trustees – Will Writers in Southend