Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
Currently the HMRC guidelines are as follows:
Making Tax Digital for VAT
Turnover greater than VAT threshold (£85,000)
MTD rules are currently compulsory for VAT registered businesses with a taxable turnover above the VAT threshold. These businesses are required to keep digital records and should submit VAT returns using compatible software.
Turnover below than VAT threshold (£85,000)
Currently these businesses can voluntarily join the MTD service. However, they will be required to comply with MTD rules for their first return starting on or after April 2022.
Making Tax Digital for Income Tax
MTD for Income Tax will be compulsory for self-employed businesses and landlords with income above £10,000 from their next accounting period starting on or after 6 April 2023.
How can we help?
- Is your business’s taxable turnover above the VAT threshold?
- If you have already registered for MTD we can assist you with your compliance needs.
- If you have not yet registered, we can help you set-up.
- Is your business’s taxable turnover currently under the VAT threshold?
You will need to be prepared for MTD by April 2022. We can assist you with finding the right software and provide training if required for you to be prepared for the new rules.
- MTD for Income Tax – with 6 April 2023 approaching fast, get in touch with us now so we can help you plan to ensure you are ready when the time is here.
Require more information?
If you would like more information or would like to speak to us directly then call us on 020 8863 3337. Or if you would prefer, complete our Quick Contact Form and we will be in touch.