Further dates announced for the next stage of Making Tax Digital
As part of the government’s agenda for a “21st Century Tax System”, HMRC yesterday announced plans to further extend the Making Tax Digital (MTD) programme. Making Tax Digital is already in place for businesses with turnover above the VAT threshold, but yesterday’s announcement will also bring businesses with turnover below the VAT threshold of £85,000 into the programme from April 2022. Taxpayers who file self-assessment returns for business or property income of more than £10,000 a year will then be brought in the following year as summarised below:
- Make MTD for Income Tax mandatory from 6th April 2023 for businesses and landlords with turnover in excess of £10,000
- Ensure all businesses registered for VAT (including those below the VAT threshold) submit their VAT returns via MTD from April 2022
- Consult this Autumn on how MTD can be extended to include Corporation Tax
HMRC also plan to begin a range of consultations in line with its 5-10 year vision to deliver on its goals for the tax administration framework.
Further details and the full statement can be found here
HMRC believe Making Tax Digital will make it easier for businesses to keep on top of their tax affairs, and the potential to improve productivity. But some have already voiced concerns that it could place an added burden on small businesses who may still be recovering from the current crisis.
Here at G+E, our Real Time Accounting Team of Xero Accredited Specialists are ready to work with you to implement the right digital accounting solution to ensure you and your (property) business are ready for the change to MTD.
If your current record keeping or software is not MTD ready, or you are just not sure, please do get in touch and our team will be happy to help.
Jackie Senior, Director – firstname.lastname@example.org