Government sets out draft agenda for a 21st century tax system
22nd July 2020Today the government has set out its draft agenda for a 21st century tax system, they say these are the next steps in an ambitious plan to create a modernised digital tax system fit for the modern world.
This is part of the Treasury’s long term tax digitisation plan, which is designed to increase national productivity, make it easier for businesses and people to pay tax and reduce avoidable errors and fraud. At present under Making Tax Digital (MTD) all businesses above the VAT threshold of £85,000 are required to keep digital records and provide VAT returns through software.
- From April 2022, the MTD programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000).
- From April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.
The government will also consult in the Autumn on the detail of extending making tax digital to incorporated businesses with Corporation Tax obligations
The above has been included within the finance bill 2020-21 legislation and more detail is available on the link below.
https://www.gov.uk/government/news/government-sets-out-draft-agenda-for-a-21st-century-tax-system
Please get in touch if you require advice on the above or cloud accounting generally.
Disclaimer - All information in this post was correct at time of writing.
