HMRC is overhauling the entire UK tax system and Making Tax Digital (MTD) is just the beginning. In essence, MTD means the end of the annual tax return for most tax payers, replacing it with the filing of information through a fully digitised system.
What is Making Tax Digital (MTD)?
What does MTD mean for UK tax-payers?
Every tax-payer will be allocated a digital tax account through the current Government Gateway. It will become a requirement to use digital (Cloud) software to maintain your business records and to provide updates of information to HMRC each quarter.
The short answer is: probably, yes. The changes will apply to a wide range of taxpayers, including most businesses, self-employed professionals, and landlords.
As part of the March 2017 Budget to the Making Tax Digital consultation, the Government confirmed the key start dates as:
- April 2018 for income tax reporting for the self-employed and unincorporated property businesses with turnover above £85,000
- April 2019 for VAT reporting
- April 2020 for corporation tax reporting and income tax reporting for partnerships with turnover exceeding £10 million
Will MTD affect me?
How can we help?
Our fixed-fee accountancy services include a Cloud Accounting package, delivered through our partner company QuickBooks Online, that provides our clients with the best possible fully compliant accounts package:
- Accessible from work, home, or on your mobile
- Save time balancing bank statements and payments
- Manage your commitments to HMRC