Making Tax Digital (MTD) is a UK government initiative from HMRC designed to modernise the tax system, making it more efficient, accurate, and easier for taxpayers to manage. Under MTD, businesses must keep digital records and use compatible accounting software to file tax returns online. The rollout began with VAT in April 2019. Now, all VAT-registered businesses must comply. From April 2026, self-employed individuals and landlords earning over £50,000 will need to follow MTD rules, with those earning over £30,000 joining the scheme from April 2027. Although this shift may feel significant for small businesses, it brings a wide range of practical benefits.