Making Tax Digital (MTD)
We have worked successfully with our clients who had to register in April 2019 for the Making Tax Digital Regime for VAT registered traders with taxable turnover of over £85,000.
Making Tax Digital (MTD), requires businesses to maintain digital records and send quarterly updates to HMRC using compatible software .
An estimated one million VAT registered businesses with lower annual turnover are not currently required to enter the MTD regime (2021) as they are automatically exempt on the basis of their low VATable sales level.
However, HMRC have confirmed that MTD would be extended as follows:
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MTD for VAT will apply to all VAT registered businesses, regardless of turnover, from April 2022 (currently it only applies to businesses with taxable turnover above the VAT threshold of £85,000).
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MTD for Income Tax Self-Assessment (ITSA) will be introduced from April 2024 for unincorporated businesses and landlords with income over £10,000.
We are able to work with those who will need to introduce digital records within the next two groupings in 2022 and 2024.
Next Step:
Please contact us if you need further advice.
