Making Tax Digital

Our cloud-based bookkeeping software is fully compliant for Making Tax Digital for VAT, helping to ease the online tax transition for all small businesses, accountants, and bookkeepers in the UK.

Fully MTD compliant

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What is Making Tax Digital all about?

Making Tax Digital (MTD) aims to transform the tax system by moving it online, making it more accessible and easier to get right.

Our timeline below shows the expected launch dates for each stage of MTD. Once live, you’ll need to keep records digitally and report tax online every quarter using special software, like Pandle!

What is Making Tax Digital All About?

What is Making Tax Digital for VAT?

MTD for VAT is the first round of changes in the MTD initiative.

It means that from 1st April 2022 onwards any VAT registered businesses must keep digital bookkeeping records and submit their VAT returns online using HMRC recognised software…like Pandle!

Making Tax Digital

Making Tax Digital is still being rolled out and new information is periodically being released. As new announcements are released, we’ll be keeping you updated with all the latest MTD developments right here.

1st April 2022


Making Tax Digital (MTD) becomes compulsory for all VAT registered businesses, starting from the first VAT period after 1st April 2022.

1st January 2023

Points-based penalty system for MTD VAT

HMRC updates the existing penalty system for late VAT submissions and payments, and replaces it with a new points-based penalty system.

6th April 2026

Income Tax Self Assessment (ITSA)

Landlords and self-employed taxpayers will start using with income over £50,000 must start using MTD for Income Tax Self Assessment (ITSA) from 6th April 2026. If you want to volunteer to start following Making Tax Digital rules for Income Tax earlier, you can.

6th April 2027

Income Tax Self Assessment (ITSA) - Again

The income threshold for following MTD ITSA rules reduces to £30,000

To be confirmed

Corporation Tax

Making Tax Digital is still in the consultation stage for limited companies who pay Corporation Tax, with a launch date to be confirmed.

Preparing your small business for Making Tax Digital with Pandle

So how do you get your small business prepared for Making Tax Digital? HMRC have set up a simple registration process to get you started. You will then to authorise your HMRC-recognised bookkeeping software to submit your returns - easy peasy.

Sign up for MTD with HMRC

Authorise Pandle to use your account

Submit your MTD compliant VAT Return

Preparing your small business for MTD

Simple, easy-to-use accounting software

Pandle is designed to be intuitive and easy to use, which is particularly important for those of you who are a bit anxious or hesitant to go digital – our simple approach to bookkeeping makes the learning curve much easier.

Instant support from real bookkeepers

Pandle comes with unlimited support from trained bookkeepers to help you keep your records and tax return on track. There are even out-of-hours product tours, along with a comprehensive help centre.

Automate your business bookkeeping

Our range of automated bookkeeping features such as bank rules and payment reminders enable Pandle to do the heavy lifting of your bookkeeping, whilst you crack on with ensuring your business is making the big bucks.

Backing businesses of all shapes and sizes

Join over 85,000 users currently benefiting from our easy to use, intuitive bookkeeping software.

Preparing your accountancy practice for Making Tax Digital

How can Pandle help to prepare your accountancy practice for Making Tax Digital? Sign up for your free Pandle partner account today to get started for simple error-reducing bookkeeping with HMRC-recognised software.

Easily transfer your clients to Pandle

Manage all of your clients from your free partner account

Submit their VAT returns directly to HMRC with Pandle

HMRC recognised software

We're currently one of HMRC's recognised software suppliers supporting MTD for VAT and will be well ahead of the curve for the upcoming changes in the Making Tax Digital initiative for Income and Corporation Tax.

Collaborate with ease

Pandle enables you to make changes in bulk, lock transactions to avoid accidental editing, and includes a notes function for general comments or to ask questions about specific records to help clients stay MTD compliant.

Less errors for you to fix

Pandle has a host of error reduction, data validation tools and error warning notifications that never sleep. Less errors means fewer corrections for you to make before submitting the VAT return, saving you valuable time.

Frequently Asked Questions - Making Tax Digital

MTD for Small BusinessSmall BusinessMTD for Accountants and BookkeepersAccountants

You will need to sign up for Making Tax Digital with HMRC. They have a very simple registration process that you can begin here.

Once you have signed up, you will need to sign in to your HMRC-recognised bookkeeping software (like Pandle) and authorise them to use your account.

Our software is designed to be intuitive and easy to use, which is particularly important if you’re anxious about getting started with digital bookkeeping. Our simple approach to bookkeeping makes the learning curve much easier.

As a Pandle user, you’ll also have access to live chat support from trained bookkeepers who will guide you through the process of connecting your MTD account to Pandle.

Making Tax Digital is rolling out in stages, so check the timeline to see when or if you’re affected. Once you fall within the scope of MTD rules, you will be required to comply though!

Your free Pandle Partner account lets you switch between clients easily, without needing to log in and out. Just switch to whichever client profile you’re working on and get stuck in.

Nope! Being a Pandle Partner doesn’t cost you anything. Your clients will also receive an exclusive discount for Pandle Pro – 50% off, bringing the cost down to £2.50 per month.

Pandle has a help centre with guides, articles and product tours helping users find their way around. We also provide unlimited live chat support with our team of trained bookkeepers, so your clients get help with the software in a way which won’t cause problems for you as their accountant!

Get started with Pandle

Create your free account today to get started with refreshingly simple bookkeeping software.

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