Making Tax Digital – timetabling and exemptions

Making Tax Digital (MTD) is being phased in gradually. The information below will help you work out when your business goes digital. It’s quite technical, so please feel free to get in touch with us for a plain English explanation.


Which tax?



  • Self-employed individuals who are VAT registered
  • VAT registered business (to cover VAT reporting)


Which tax?

Income Tax & Class 4 NICs


  • Self-employed individuals and landlords, whose turnover exceeds £10,000
  • Individuals and partnerships carrying out the following activities:
    • A trade, profession or vocation
    • A property business
    • Any other activity chargeable to income tax under Part 2 or 3 of ITTOIA 2005.

It is also anticipated, although not yet confirmed, that the following businesses will also join MTD in 2020:

  • Large partnerships with a turnover above £10 million
  • Companies

Which tax?

  • Corporation Tax
  • Income Tax & Class 4 NICs


  • Companies
  • Large partnerships


  • Business with ‘excluded activities’
  • The ‘Digitally Excluded’
  • Insolvent businesses
  • Charitable Trusts

Exemptions apply to:

  • Business with a turnover of less than £10,000. HMRC can set exemptions based on income or other financial criteria.
  • ‘Digitally excluded’ people. This means people who are practicing members of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records, or – for any reason (including age, disability or location), it is not reasonably practical for the person or their partner to use electronic communications or to keep electronic records.
  • Insolvent Businesses (subject to insolvency proceedings).
  • The trustees of a charitable trust, or the trustees of an exempt unauthorised unit trust (unless the trustees elect for MTD to apply to them.)

Don’t forget, we’re here to help! We make sure our clients stay compliant with changes to any tax rules, while ensuring they don’t overpay. If you’d like assistance with any aspect of your accounts please call us on 020 8530 0720 or email