Making Tax Digital is HMRC's vision to digitise the UK tax system and is likely to affect all businesses in some way and depending on your circumstances as early as April 2019. At a basic level this means that financial records will need to be held digitally and submissions to HMRC will need to be completed using MTD approved software.
From April 2019 VAT reporting by all VAT registered businesses and organisations (including sole traders, partnerships, limited companies,non-UK businesses registered for UK VAT, trusts and charities) with turnover above the VAT threshold will be affected and forced to comply with the new regulations. HMRC has announced a 6-month deferral to the start date for some more complex businesses.
From April 2020 MTD for income tax and corporation tax is forecast for implementation. MTD for VAT may also be extended to all VAT registered businesses. Further details have yet to be announced.