What is Making Tax Digital
Making Tax Digital (MTD) is a government initiative to modernise HMRC’s tax system, with the aim
of making the whole process of administrating tax simpler and more efficient.
Making Tax Digital for Income Tax
The government has now announced that they will introduce Making Tax Digital for Income Tax Self- Assessment (ITSA) a year later than planned, in the tax year beginning in April 2024.
The start date for partnerships to join MTD for ITSA has been put back still further to the tax year beginning in April 2025.
There is a £10,000 per annum gross income threshold which means that most self-employed traders and buy to let landlords will be mandated to comply with MTD for income tax from April 2024.
Making Tax Digital for Vat
Most VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are already familiar with Making Tax Digital. They’ve been required to keep digital VAT records and send returns using MTD compatible software since 2019.
From April 2022, Making Tax Digital will apply to all VAT-registered businesses (with a few exceptions).
If you require our assistance with Making Tax Digital please contact us.
Assistance with Making Tax Digital
We have an extremely knowledgeable team ready to help you get up and running with digital record keeping. We use cloud accounting to satisfy the digital record keeping requirement. We have migrated a large number of our clients from manual record keeping to cloud accounting to ensure compliance with the Making Tax Digital rules. Record keeping does not need to be difficult and we are able to advise you on digital software so that keeping your records is easy.
Our staff are trained on Xero and other software so we are able to assist you with your software queries.
If you have concerns over whether you are compliant with Making Tax Digital or you need help setting up a cloud accounting package please call to arrange a free initial consultation.