We already have Making Tax Digital for many VAT registered businesses above the VAT threshold (currently £85,000), but HMRC have just announced an extended rollout to MTD on two fronts.
Making Tax Digital for VAT
At present MTD for VAT is mandatory for businesses above the VAT threshold, presently £85,000.
From April 2022, MTD will apply to all VAT registered business with turnover below the VAT threshold. This will be from the first VAT Return starting after 1st April 2022.
MTD for Income Tax
From April 2023, MTD for Income Tax will come into play for taxpayers who file Self-Assessment Income Tax Returns where their businesses or property income is over £10,000 per annum.
Other changes
Other changes are being considered including changing the tax payment system and extending the obligations to companies. We may well see further details on these and the proposed changes later this year.
We will keep you informed
Whilst no immediate action is necessary, we are monitoring the situation.
We will keep you informed of the changes before they come into effect, and what action you can take well in advance. In the meantime, if you do have any questions or concerns please do contact us.
