Making Tax Digital (MTD) is HMRC’s initiative to digitise the UK tax system. Having introduced MTD for VAT, which has applied to all VAT registered business since 2022, HMRC begins the rollout of MTD for Income Tax from April 2026. These latter rules will affect the self-employed and property landlords.
Absolute Accounting Software has developed two innovative products to help taxpayers comply with the MTD rules. These products use bridging software technology that enables taxpayers to digitally link their financial data from spreadsheets to the relevant HMRC MTD portal. HMRC has confirmed that using spreadsheets with MTD compatible bridging software will remain an effective ongoing option for taxpayers to comply with MTD.
What is MTD for Income Tax?
MTD for Income Tax will require eligible taxpayers to move from filing an annual self-assessment tax return to filing quarterly income and expense data, as well as a final income declaration (tax return).
These submissions can only be made using HMRC recognised MTD compatible software that digitally links their financial records to HMRC's MTD for Income Tax portal.
NFU members with gross annual income from self-employment or property that exceeds the following income thresholds will have to comply with MTD for Income Tax from these dates:
- From April 2026, those earning £50,000 or more.
- From April 2027, those earning £30,000 or more.
- From April 2028, those earning £20,000 or more.
Income from employment (PAYE) or pensions is outside the scope of MTD.
HMRC has yet to confirm when partnerships will have to comply with MTD for Income Tax, although it has stated that MTD for Corporation Tax will not be implemented.
A cost effective solution for MTD for Income Tax compliance
Absolute has created a low-cost solution to help NFU members comply with these new rules. Their Excel Income Tax Filer bridging software allows members to use Excel spreadsheets to record their financial data before digitally linking this into HMRC’s MTD for Income Tax portal.
It is recognised by HMRC, is very easy to use and does not require you to adopt complicated and expensive accounting software.
The Excel Income Tax Filer usually costs £40+VAT. Discounts are available for eligible NFU members. This price covers five national insurance numbers (taxpayers) for a tax year.
- You'll find further details on the Absolute Excel Income Tax Filer website.
- Find out how Excel Income Tax Filer works in this short video demonstration.
What is MTD for VAT?
Since April 2022, it has been mandatory for VAT registered businesses to comply with the requirements of MTD, regardless of the size of their turnover.
The Absolute Excel VAT Filer is another bridging software product that allows you to submit your VAT data in the correct digital format to HMRC. It is easy to use and doesn’t require buying a new bookkeeping package, saving you time and money by avoiding the need to learn a new accounting system.
The Excel VAT Filer works with standalone spreadsheets or spreadsheets exported from non-MTD accounting packages.
The software is recognised by HMRC as MTD compatible and includes free online technical support from the Absolute team.
Not only does the software let you file your VAT returns directly to HMRC’s MTD portal it also:
- enables you to fix VAT returns that HMRC has rejected;
- lets you check current and previously filed VAT returns;
- allows you to reprint successful submissions;
- keeps you up to date with your licences and their expiry dates; and
- has many more features to help make filing VAT returns as easy as possible.
The Absolute Excel VAT Filer software usually costs £40+VAT for up to 10 VAT traders (unique VAT numbers) for a 12 month period. Discounts are available for eligible NFU members.
Access further information on how the Absolute Excel VAT Filer can help you, and watch this short video to see how the software works.
Absolute’s Excel VAT Filer has already helped over 18,000 users, including several hundred NFU members, to file their VAT returns digitally, with users filing over 1.1 million VAT returns since the start of MTD.
What is the discount?
Both the Absolute Excel Income Tax Filer and the Excel VAT Filer software usually cost £40+VAT per year per product.
- NFU members pay just £30+VAT per year for each product, a 25% discount off the regular price.
- Renewal price for NFU members is just £30+VAT per year.
- All previous discounts offered to existing NFU members will be honoured.
How do I get the discount?
- Call NFU CallFirst on 0370 845 8458 and register your interest
- The NFU will pass eligible NFU members' details to Absolute accounting to process order
- Absolute Accounting will contact eligible members to fulfil their order.