The Ftax team are working on a low-cost MTD for IT solution to be launched April 2026. Contact us for further information.
The Ftax team are working on a low-cost MTD for IT solution to be launched April 2026. Contact us for further information.
Ftax is fully MTD compliant.
MTD is a new way of submitting tax to HMRC which, combined with a set of principles, has been designed to reduce errors and improve tax filing timeliness. This will involve the increased use of software to automatically process accounting and tax filing data from its time of capture, e.g. data entry from an invoice, to the point of submission.
The first MTD tax filing system to be introduced by HMRC was VAT. Self Assessment will be next, possibly followed by Company tax, although this is yet to be confirmed.
The Ftax VAT tax filing form is already fully compliant with MTD. Ablegatio is fully committed to follow future HMRC MTD initiatives, and to upgrade the Ftax service accordingly.
Making Tax Digital (MTD) means keeping digital records and submitting returns via MTD-compatible software through HMRC’s APIs. The aim is simpler, more accurate filing with a clear audit trail from source records to submission. MTD currently applies to VAT; Income Tax Self Assessment (ITSA) will follow on HMRC’s timeline, with Corporation Tax to be confirmed. Ftax supports MTD for VAT and will align with future services as they roll out.
For MTD for ITSA, qualifying income is your total gross income before expenses from:
If that combined total is £50,000 or more from April 2026, or £30,000 or more from April 2027, you’ll be mandated for MTD for ITSA. Income from employment (PAYE), pensions, savings or dividends does not count towards these thresholds.
HMRC research shows existing participants have felt more confident about filing their returns since the MTD VAT rules were introduced. Most of those surveyed found it easier to prepare and calculate their VAT return.
MTD benefits include:
Along with saving time, the main benefit of MTD is the improvement in accuracy. Processes which were previously carried out manually are automated using MTD software. This leads to income and expense values being imported correctly and errors being automatically identified. This means businesses can spend less time on paperwork and more time on their business.
From April 2026, MTD will be rolled out for Income Tax Self Assessment. self-employments and landlords with an annual turnover above £30,000.
Ftax will follow all MTD initiatives.
There are a few exceptions, but those who do not comply with the rules and meet MTD deadlines could face a fine. From January 2023, HMRC is moving to a points-based system so that MTD for VAT penalties will only be given to those who regularly make mistakes and miss deadlines. Taxpayers who make occasional errors will not be penalised.
The Making Tax Digital rules require you to:
Only software recognised by HMRC which meets the Making Tax Digital requirements may be used for MTD tax filing. The Ftax MTD VAT form fully complies with HMRC’s MTD requirements.
Ftax does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult with your own professional advisors or with HMRC for advice directly relating to your business before taking action in relation to any of the content provided. Ftax Support will only be able to assist you with matters directly concerning the Ftax products and service.
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