Making Tax Digital Update
Making Tax Digital
HMRC’s digital plans with Making Tax Digital (MTD) were announced last autumn, with a planned April 2018 roll-out for quarterly reporting by unincorporated businesses and property landlords.
After a consultation period that saw forceful opposition to the government’s plans and timescale, HMRC announced in late January that it would still press ahead regardless with the April 2018 roll out, but give further thought to the turnover level above which businesses will be required to make quarterly returns.
The Chancellor confirmed that unincorporated businesses and landlords with turnover below the VAT threshold – £85,000 from April – will have an extra year before MTD applies. The Budget press releases confirmed when businesses, self employed people and landlords will be required to start using the new digital service from, depending on their qualifying criteria and circumstances:
- April 2018 if they have profits chargeable to Income Tax, pay Class 4 National Insurance Contributions (NICs), and turnovers are in excess of the VAT threshold
- April 2019 if they have profits chargeable to Income Tax, pay Class 4 NICs, and turnovers are below the VAT threshold
- April 2019 if they are registered for and pay VAT
- April 2020 if they pay Corporation Tax
Businesses, self-employed people and landlords with turnovers under £10,000 are exempt from the MTD requirements.
For more information please contact our Personal Tax Team. Or fill in our contact form below: