VAT registered businesses with VAT turnover below £85,000 will be required to follow Making Tax Digital (MTD) rules for returns filed on or after April 2022.
The latest announcement surrounding MTD was made by the Government on Tuesday (July 21, 2020).
Currently VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are required to follow MTD rules by keeping digital records and using software to submit their VAT returns.
VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022.
If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now.
Making Tax Digital for Income Tax
Self-employed businesses and landlords with business turnover above £10,000 will need to follow the rules for MTD for Income Tax from their next account period starting on or after April 6, 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.
Our software specialist Anna Rowson-Smith will be with you every step of the way; offering impartial advice from the start; Anna will review your needs, your resources and offer a solution that is best for you.
Anna also provides three hours of FREE set-up and training to all our clients.
For further information, or to sign up today, email firstname.lastname@example.org or call 01244 343504.