Research has shown that there are still business and individuals who do not know the important dates, that they need to follow MTD rules or understand what the requirements are so we have summarised the requirements below:
VAT Registered Businesses
VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) should be following the Making Tax Digital rules NOW by keeping digital records and using software to submit their VAT returns.
VAT-registered businesses below the VAT threshold can voluntarily join the Making Tax Digital service now, they will be required to follow Making Tax digital rules for their first return starting on or after April 2022.
Self-employed Businesses and Landlords
If you have a business or property income above £10,000 per annum, you will need to follow the rules for MTD for Income Tax from the next accounting period starting on or after 6 April 2023.
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax. If you are a self-employed business or landlord, you can voluntarily use software to keep business records digitally and send Income Tax updates to HMRC instead of filing a Self Assessment tax return.
We already have a number or self-employed businesses and landlords that we provide an MTD compliant service for in readiness for the deadline, moving over now ensures any potential problems are resolved sooner. Contact us for more information by clicking here or call us on 01865 522785.
Making Tax Digital for Corporation Tax
The government will provide businesses with an opportunity to take part in a pilot for Making Tax Digital for Corporation Tax and will not mandate its usage before 2026.
For more information, read our blog by clicking here.