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
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