What is Making Tax Digital?
You have probably seen, heard, or read about making tax digital. But what is it?
Making tax digital is a key part of making it easier for individuals and businesses to get their tax right and keep on top of their affairs - to make things more effective, more efficient and much easier. HMRC wants to become one of the most digitally advanced tax administrations in the world!
As the rollout of Making Tax Digital continues, here’s what you can expect to happen next;
VAT - VAT registered businesses with a taxable turnover below £85,000 will need to comply to the new making tax digital rules.
Self assessment - Making tax digital for income tax will be introduced by 2024, this will require self-employed people and landlords with an income above £10,000 to follow the MTD rules.
Corporation tax - MTD for corporation tax is expected to be the next phase but won't come into effect until at least 2026.
All this means you will need to use HMRC recognised Making Tax Digital software to keep full digital records of your accounts and file VAT returns. VAT registered businesses will be required by law to maintain their digital records.
Making tax digital is a key part of making it easier for individuals and businesses to get their tax right and keep on top of their affairs - to make things more effective, more efficient and much easier. HMRC wants to become one of the most digitally advanced tax administrations in the world!
As the rollout of Making Tax Digital continues, here’s what you can expect to happen next;
VAT - VAT registered businesses with a taxable turnover below £85,000 will need to comply to the new making tax digital rules.
Self assessment - Making tax digital for income tax will be introduced by 2024, this will require self-employed people and landlords with an income above £10,000 to follow the MTD rules.
Corporation tax - MTD for corporation tax is expected to be the next phase but won't come into effect until at least 2026.
All this means you will need to use HMRC recognised Making Tax Digital software to keep full digital records of your accounts and file VAT returns. VAT registered businesses will be required by law to maintain their digital records.
