MTD Individuals (Making Tax Digital for Individuals)
MTD for Individuals allows all taxpayers to see their tax records in a digital format.
The current system for UK taxpayers falls into two distinct groups.
- The first group are those under self-assessment whom are required to complete a personal tax return. They typically have regular dealings with HMRC.
- The second much larger group consist of employees whose taxes are dealt with via the PAYE system. They typically have no contact with HMRC.
Up until very recently the second group had no access to their tax records in a digital format. The solution by HMRC was to create the Personal Tax Account (PTA).
MTD Individuals Explained
The current system for UK taxpayers is to receive a paper copy of every taxable item. Some examples include:
- Salaries are provided in the form of a payslip and an end of year P60
- Pensions are provided in the form of an end of year P60
- Dividends are provided in the form of a dividend voucher
- Bank interest are provided in the form of an annual bank statement
- Capital gains are provided in the form of an investment portfolio
The HMRC vision for MTD Individuals is for all of the above information to be available digitally on one platform. This will eventually by the PTA but it is still in development.
Personal Tax Account (PTA)
The PTA is still in its infancy but we do recommend that all individuals sign up.
There are many services already available within the PTA such as checking your income tax and tax code, manage tax credits, check state pension, etc. More services are being added as the PTA develops.
To set up a Personal Tax Account (PTA)
Or watch this HMRC video for more information
TIP: MTD Individuals is not like MTD Business or MTD VAT. MTD Individuals is a useful and often helpful access to your digital records. You aren’t required to do anything extra and therefore we recommend signing up.