MTD has been delayed for another year until 2024, but it as it stands, HMRC still intends to go ahead with it. Here is some information to help you prepare.
With the introduction of Making Tax Digital, HMRC will require you to provide quarterly reports in addition to a final year-end self-assessment declaration. This means many business owners will have to be more organised or accumulate points which add up to increasing penalties.
While not confirmed, but from draft regulations in early 2021, reports will likely be due within one month of each quarter-end, which are 5th July, 5th October, 5th January, and 5th of April.
To use MTD, users will have know how to use types of accounting software compatible with MTD, such as Quickbooks, Sage, Xero, FreeAgent. A list of recognised tools can be found here.
Who will MTD apply to?
VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 are already required to use MTD. However, come 2024, all self-employed businesses and landlords with an annual business turnover of £10,000 or more, will have to register for MTD to submit their self-assessment tax returns to HMRC.
If you need help with the oncoming switch to MTD, contact us via email, phone or let us know through social media.