VAT
HMRC’s vision to digitise the UK tax system is now well underway. The process started in April 2019 with VAT registered businesses with turnover exceeding the VAT threshold (currently £85,000) being required, from this date, to use compliant commercial software to maintain their VAT records and send their VAT information to HMRC every quarter.
HMRC has now confirmed that all VAT-registered businesses, including those below the threshold, will be subject to these rules and requirements from April 2022.
View our infographic on how to register for Making Tax Digital with HMRC
Income Tax and Corporation Tax
HMRC has confirmed that MTD reporting will apply in respect of Income Tax for the self-employed and landlords with gross incomes of £50,000 or more from April 2026, and those with gross incomes of between £30,000 and £50,000 from April 2027. This will also require these taxpayers to report and submit information digitally on a quarterly basis using HMRC-compliant software. A consultation is taking place to consider when general partnerships will need to comply with these rules.
The Government will also consult on plans to extend MTD to cover Corporation Tax for companies in future.
Stay informed
At Moore Thompson we are here to help our client’s ensure they are as prepared as possible for the changes ahead both by keeping you up to date with the latest developments as released by HMRC, and the software providers, but also in providing you with new and improved online accountancy software and bookkeeping options.
To keep up to date with the latest MTD news register now for our weekly MTD blogs.
To find out how we can help your business comply with Making Tax Digital, please contact our tax team now.
To find out more about our online accountancy services, please contact us.
