How the upcoming Making Tax Digital changes affect your business
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

Making Tax Digital (MTD) is the name of the government’s scheme to move all small business tax payments online, aimed at turning HMRC into the most advanced tax administrators in the world.

Of course, no transition is as easy as we’d like it to be, and with the move to digital tax filings in full swing, there will invariably be a few growing pains as businesses adjust to the new systems and requirements.

Here at Crunch, we’ve been helping our clients with online accounting and tax filing for over ten years, and we were amongst the early adopters of MTD for VAT working with HMRC to ensure our software was ready. We’ve been MTD-compatible since spring 2019, and all of our 11,000+ sole traders and limited company clients are operating safely in the knowledge that we’re already on top of things. More changes are planned, however, and if you’re not a Crunch client, you need to be sure your business and/or your accountant are ready for them.

So, what’s changing, when is it changing, and what do you need to do? Let’s discuss.

Making Tax Digital for VAT

As it stands, all businesses with an average turnover above the VAT threshold are required to store their records and file their VAT returns using online software. This is something that all online accountants, such as Crunch, should already be doing for you if you fall into this category.

From April 2022, however, all VAT-registered businesses must file their VAT returns online, regardless of whether their business turnover is above or below the VAT registration threshold. If you find yourself in this category, you can either choose to voluntarily join the Making Tax Digital service today, or wait until it becomes mandatory in 2022. We would definitely recommend the former, though – the sooner you’re signed up and getting used to the process, the better.

If you’re a Crunch client, the good news is that we’ll already have helped you enroll for the Making Tax Digital VAT scheme, so it’s already taken care of!

Making Tax Digital for Income Tax

The government has delayed the implementation of Making Tax Digital for Income Tax Self-Assessment (known as ‘MTD for ITSA’) until 6 April 2024, with MTD for general partnerships postponed to 2025. The change to the tax year basis for unincorporated businesses has also been delayed until at least April 2024.

MTD for ITSA applies to an individual, partnership or trust with total business or property income above £10,000 per year. The threshold of £10,000 applies to total gross income or turnover.

The delays were announced to ensure businesses and landlords have sufficient time to prepare for MTD for ITSA in the aftermath of the COVID-19 pandemic.

We’ve published an article about MTD for ITSA if you need more information.


Making Tax Digital for Corporation Tax

The transition to digital Corporation Tax filings is still in its consultation period at the time of writing. The government is still looking to hear from small business owners, agents, professional bodies, and software developers.

The government has pledged that there will be no obligation to complete Corporation Tax filings online until at least 2026, and will be inviting businesses to join a pilot for the program when it becomes available. We’ll be updating this article in the future when more information is provided.

While you’re here, don’t forget to check out our article on “How to reduce your Corporation Tax” to make sure you’re running your business as tax-efficiently as possible.

How to prepare for changes to Making Tax Digital

If you’re unsure how exactly to meet the requirements, the answer is relatively simple: you need to get your hands on some MTD-compatible software that allows you to digitally send and store your records.

On Gov.uk, you’ll find a comprehensive list of software options that HMRC themselves have rubber-stamped as MTD-compatible. You’ll notice that Crunch feature on that list, too, so if you’d like to save yourself hours of searching and debating your options, why not give us a call?

On our Making Tax Digital Hub, you’ll find a complete breakdown of the government’s ambitions for MTD, what you need to do to prepare, and the areas which are currently subject to MTD rules.

As you can see, we’re experts in this area, and not only are we already helping thousands of people file their VAT returns in compliance with MTD guidelines, we’re also hard at work behind the scenes preparing for the future changes, too.

If you’d like Crunch to help you manage your new and impending responsibilities under the Making Tax Digital scheme, give us a call or book a callback with one of our friendly, expert advisors. In the meantime, why not head over to our pricing page for a full breakdown of the packages and services we offer?

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
Self Assessment tax returns done for you, from just £200+VAT
Take the stress out of Sole Trader Accounting, with our simple online software, so you can look after your accounts anytime, anywhere.
Share this post
Ross Bramble
Content Executive
Updated on
September 26, 2021

Knowledge Hubs

Take control of your accounts, today

Crunch’s effective software package includes being able to talk to an expert client manager and a Chartered Certified Accountant. You can count on Crunch to make you productive and profitable.

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! June 27, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks
Pro Tip
Work out the tax you owe in seconds

Discover your true take-home pay with our self-employed tax calculator – see exactly what you’ll keep after tax, National Insurance, and expenses.

Pro Tip
Want to know how much National Insurance you owe?

Find out exactly what you owe on your income in seconds with our free National Insurance calculator.

Pro Tip
Want to know how much mileage you can claim for?

Our free mileage allowance calculator can help you see in seconds what you could get back.

Pro Tip
Want to work out your income tax?

Find out what Income Tax and National Insurance you owe on your earnings with our free tax calculator.

Pro Tip
Want to work out what your Capital Gains Tax bill?

Our free Capital Gains Tax calculator shows what tax you owe on any property, stocks or gifts.

Pro Tip
Want to know how much dividend tax you owe?

Find out exactly what you owe on your investments in seconds with our free dividend tax calculator.

Pro Tip
Want to see what we're currently working on?

Our public roadmap shows what we're working on and what's coming next. You can even vote on what features we work on next!

Pro Tip
Your ultimate guide to stress-free taxes

Tackling taxes can be tough! Get our "Ultimate tax guide for the self-employed" now to make it easier.

Pro Tip
Claim your FREE ecommerce guide today

Curious how great accounting can boost your e-commerce business? Download our guide to discover 8 key ways!

Pro Tip
Unlock the secrets of Ltd company expenses

Don't miss out on potential tax savings - get access to our 'Limited Company Expense' guide today!

Pro Tip
Want to make sure you don't miss any tips?

Sign up to our newsletter for expert insights, tax news and other essential updates that will keep your business thriving. Subscribe now!

Pro Tip
Ready to save big on Ecommerce accounting?

Crush your current accounting and software fees by up to 60%. Put us to the test and watch your savings soar!

Pro Tip
Looking for a dedicated accountant?

Our Enterprise packages offer tailored support for you and your business. You can focus on your business, we'll crunch the numbers.

Pro Tip
Boost your business finances with our Ltd Company packages!

Award-winning software with support from expert accountants

Pro Tip
Take the stress out of Sole Trader Accounting

Real-time insights, expert support—stay on top of your finances with ease.

Pro Tip
File your Tax Return

Get your tax return sorted by experts for only £200+VAT!

Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Pro Tip
Want access to real expert accountants?

All our accounting packages include free access to Chartered Certified Accountants, so you can make confident business decisions without worrying about extra costs racking up.

Pro Tip
File you Tax Return!

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £200 +VAT.

Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.