Making Tax Digital

What is ‘Making Tax Digital’?

Making Tax Digital is new legislation from HM Revenue & Customs (HMRC) that will be brought in gradually for individuals and businesses. The idea is to update HMRC of your income and expenditure quarterly in order to follow a real-time system so that they can calculate tax owed or owed to you throughout the year.

Under MTD businesses must update HMRC with their income and expenses at least once every three months via software that complies with MTD.  Small businesses and landlords under the VAT threshold will have an extra year to prepare for MTD.

What are the deadlines for you for registering for MTD?

  • April 2018 for income tax and National Insurance contribution (NICs) purposes if your turnover is over the VAT threshold
  • April 2019 for income tax and NICs purposes if your turnover is below the VAT threshold
  • April 2019 for VAT purposes for everyone who is VAT registered
  • April 2020 for Corporation Tax (CT) purposes for everyone who pays CT

Please note the above are guidelines set out by HMRC and are subject to change.

As an accountancy practice, Your Tax Shop are being one of the first to test HMRC’s Beta version of MTD. This means that we can trial everything before it is released fully to the public and give our feedback!

Please note the above are guidelines set out by HMRC and are subject to change.

As an accountancy practice, Your Tax Shop are being one of the first to test HMRC’s Beta version of MTD. This means that we can trial everything before it is released fully to the public and give our feedback!

 
Contact Us
Contact Us