What is Making Tax Digital?

Making Tax Digital is the government’s plan to modernise and digitalise the UK tax system.

Changes are being brought in that will enable HMRC to collect and process information affecting tax liabilities as close to real time as possible, while giving taxpayers access to digital tax accounts. This will enable users to see all the information that HMRC holds, while enabling them to see their tax position throughout the year.

The introduction of Making Tax Digital will be phased, first affecting VAT-registered businesses with a taxable turnover exceeding £85,000. These businesses will be required to submit electronic tax returns from April 2019.

The remainder of VAT-registered businesses will be affected from April 2020, with corporation tax and self-assessment impacted at a later date.

In order to be compliant with Making Tax Digital when submitting a tax return, all communications must support Transport Layer Security (TLS) 1.2. As a result, we will be automatically updating Autowork Online to ensure the software meets these new requirements.