As you may be aware HMRC decided to delay their plans to implement Making Tax Digital (MTD) due to the Covid-19 virus. HMRC has now announced the new implementation dates.
Making Tax Digital will now be:
- Extended to VAT-registered businesses with turnover below the £85,000 VAT threshold from April 2022 (In other words anyone VAT registered not already in MTD will be required to comply form this date).
- Introduced for Income Tax Self-Assessment for businesses and landlords with income over £10,000 from April 2023. (This will include all sole traders, basically anyone with a small business that isn’t a limited company).
HMRC intends to consult with accountants and other business party’s this autumn about including limited company’s and corporation tax entities. The implementation date will be announced later, I think we can expect this to be brought in for 2024.
As always we will continue to consult with HMRC about the detail of these implementations, and we will also make a plan for all of our clients to make sure that you comply with the new rules. I will continue to communicate with you concerning this.
Just call us on 01803 500 500 if you have any questions or concerns about MTD.