What is Making Tax Digital and does it affect me?

Making Tax Digital (MTD) is HMRC's initiative requiring businesses to keep digital records and submit returns using MTD-compatible software rather than manual records or HMRC's old online portal. It's already mandatory for all VAT-registered businesses, and it's being phased in for Income Tax Self Assessment for self-employed people and landlords with sufficiently high income. If you're VAT registered, you should already be compliant; if you're self-employed or a landlord, it's worth checking which MTD for Income Tax phase applies to your income level and when it starts for you.