Making Tax Digital – When will the next stage start?

The dates for MTD for Business seem to change constantly, the Government and HMRC seem unable to create a plan and stick to it.

Yesterday we had a new announcement

From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000), and 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. https://www.gov.uk/government/news/government-sets-out-draft-agenda-for-a-21st-century-tax-system

The income tax pilot has been running for sometime now and it was expected to go live in April 2021 so basically its been pushed back 2 years.

But in the meantime all VAT registered business need to adopt digital ways to prepare and file VAT as a priority and it will become enforceable by 2022.

What is MTD for Income Tax?

  • Digital business records
  • Quarterly summary of income and expenditure sent to HMRC via software
  • Add personal income at the end of the year
  • Finalise affairs using software – replaces existing Self Assessment Return
  • For sole traders, landlords and partnerships
  • Affecting around 1million tax payers
  • Will include bank interest, dividends, charitable giving

steve@bicknells.net

 

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