Making Tax Digital
Making Tax Digital – A legal requirement, is your business ready?
If you are in business you may have heard about Making Tax Digital or in short MTD. If you haven’t heard then you need to know!
Making Tax Digital is LAW, it has already been implemented (1/4/2019) for Vat registered businesses with income over £85k. From 1/4/2022 it becomes mandatory for all other vat registered businesses. MTD is going to be vastly expanded in the foreseeable future and is going to include income tax and corporation tax.
What does MTD mean to individuals and businesses? Essentially what this means is that pretty much all businesses, including sole traders, freelancers, subcontractors, partnerships, investment property owners, and limited companies with an income over £10,000 will be required by law to submit quarterly returns to HMRC, via approved digital software. There will be no choice about this, it will be a legal requirement.
When do the new laws come in?
MTD for all VAT 1/4/2022
MTD for income tax (over £10k income only) 6/4/2024
MTD for Corporation Tax (suggested 2026)
This is a very big change to the way businesses report to HMRC and it’s important that we are all ready for this as it becomes mandatory. Pls find information from HMRC attached. If you have further queries or need help with your reporting please contact J&J on 07793 824995.
