As HMRC’s ambition to become one of the most digitally advanced tax administrations in the world continues so the way the tax system works to become more effective, more efficient and easier for taxpayers to get their tax right the next steps have been issued by HMRC.
Currently VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 currently are required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.
What’s changing for other businesses?
Unincorporated or Self-employed businesses and landlords who submit a Self Assessment Tax Return with gross annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
Our suggestion is to start planning early and as soon as the new tax year starts on 6 April 2021.
Please contact your local office for further information if you require further advice on this matter.