Mak­ing Tax Digit­al (MTD) will become a real­ity for all busi­ness no mat­ter their size in 2020.

Shar­on Pocock, of account­ants Kinder Pocock at This is Money explains what you need to know.

It is a new ini­ti­at­ive from HMRC designed to sim­pli­fy tax and give busi­nesses bet­ter con­trol of their fin­ances. Right now, the new rules are com­puls­ory for busi­nesses with a tax­able turnover above the VAT threshold of £85,000.

These busi­nesses have to use com­pat­ible soft­ware such as Xero and oth­ers from this list, to keep their records digit­ally and sub­mit VAT returns to HMRC quarterly.