Making Tax Digital (MTD) Update
Making Tax Digital for VAT
It has now been just over 18 months since HMRC introduced the first phase of MTD, meaning that all businesses with an annual turnover over the £85,000 limit are required to submit their VAT returns under the MTD regime. By the beginning of March 2020, more than 4 million VAT returns had been submitted using MTD compatible software.
The next deadline businesses will need to be bear in mind is that from April 2022 it will be compulsory for all businesses with a turnover below the £85,000 VAT threshold to submit their VAT returns via MTD.
For any clients or businesses that are not currently using compatible software, we can advise you of your options and can provide full training where needed.
Making Tax Digital for Income Tax Self Assessment
Following on from this, from April 2023 MTD is set to apply to taxpayers with business or property income of more than £10,000 a year.
Those taxpayers will be required to submit a quarterly summary of their income and expenses to HMRC each quarter using MTD compatible software. At the end of the year, taxpayers will be able to finalise their tax affairs using the software, thereby replacing the need to complete a Self Assessment Tax Return.
This MTD regime is currently being piloted to help HMRC with its development. We look forward to HMRC releasing the full details of the system and helping our clients with the transition to MTD.
Lisa Sampson
Senior Accounts Assistant
Lisa has worked with Margaret since 2002 and having had 2 children, now works part time. Lisa has a wealth of experience and knowledge and oversees our bookkeeping services. Lisa can be contacted in the office on Monday, Tuesday and Friday.
Outside of work Lisa enjoys horse riding and point-to-point racing.