You may have seen Making Tax Digital (“MTD”) mentioned in the press. Make no mistake, despite delays and postponements for General Elections and Brexit, this is coming for us everyone that in business or has income from multiple sources.
The first wave of MTD is about to hit us, with VAT returns for all businesses having to be submitted through recognised software. Every VAT registered business will need to effectively move its online registration to be linked to its business software.
What is of more concern though is the proposal that MTD will be introduced for individuals that complete a self-assessment tax return either because they are self-employed, or they have untaxed income in the form of a property rental or possibly even dividends. If you are a taxpayer with a rental property, you will have to submit, digitally, all your income records to HMRC four times a year and reconcile the tax you have paid annually.
Everyone must now start planning to do this through a digital channel and work more efficiently so HMRC can achieve its objective of being one of the most digital advanced tax administrations in the world.
For more information on making tax digital please visit HMRC’s website and search on the Overview document. Alternatively, come see us at Mostons where we are ready for the change.
Mostons 020 8886 1884