Making Tax Digital: Our Guide
April 2022 sees the final phase of Making Tax Digital (MTD) for VAT. But that’s just the tip of the iceberg. MTD for income tax (MTD ITSA) comes next, and implementation is likely to be altogether more challenging. And then there’s corporation tax…
MTD requires individuals and businesses to:
- Keep and preserve certain specific business records digitally, in what is known as MTD functional compatible software
- File quarterly updates with HMRC via that software • complete an end of year finalisation process where relevant.
WHO IS AFFECTED?
- Those with ‘qualifying income’ over £10,000. This is total income from self-employment and property. In a post-pandemic context, where many businesses have made a loss, it’s important to note that the total is before deduction of expenses.
- Trusts, estates, trustees of registered pension schemes and non-resident companies are not included in MTD ITSA.
- There are special provisions for non-UK domiciled individuals.
You can view and/or download our comprehensive guide to ‘Making Tax Digital’, here