Making Tax Digital (MTD) is being introduced as HMRC wish to have a streamlined system from which businesses can provide information to HMRC.
Whether making tax digital is affecting you now or will affect you in the future, we can support you through these changes.
Making Tax Digital was first introduced for VAT registered businesses and came into effect from 1 April 2019.
Under the scheme, VAT registered businesses are required to maintain digital records, completing their VAT returns directly from those digital records and submit the returns digitally to HMRC.
Businesses will need to ensure that they have appropriate software that will both meet HMRC's criteria as well as meeting the requirements of the business internally.
VAT registered businesses with annual turnover below £85,000 were not included in the initial introduction of Making Tax Digital but will have to meet the rules from 1 April 2022.
We can help you to implement an appropriate system or alternatively, you could take advantage of our bookkeeping service, allowing us to deal with your MTD compliance.
The Government has confirmed that they would focus on supporting businesses to transition to MTD for VAT and will therefore not be mandating Making Tax Digital for any new taxes or businesses in 2021.
More recently, it has been announced that from April 2023, MTD will apply to those individuals completing self-assessment tax returns with business or property income over £10,000 annually.
For corporation tax, HMRC have confirmed that MTD will not apply until at least 2026.