How will MTD affect me?
Individuals and businesses will all be affected by Making Tax Digital (MTD).
The Personal Tax Account brings together each individual’s information in one online place. It allows individuals to access the service from a digital device of their choice and at a time that suits them. It enables them to register for new services, update their information and see how much tax they need to pay.
Over time individuals will not have to complete tax returns at the end of the year as all relevant information will be fed electronically into their digital tax accounts.
HMRC wants to help businesses get their tax right first time and to prevent them from feeling punished for making honest mistakes. HMRC believes that the introduction of digital record keeping and quarterly updates will reduce mistakes and give businesses a clearer view of their tax position during the course of the year.
If you have a business you will have to report quarterly using software directly to your digital tax account.
The start dates for this type of reporting are as follows:
- Income tax for self employed people and landlords with annual turnover over the VAT threshold (See VAT registration) – From April 2018
- Self-employed people and landlords with turnover above £10,000 – From April 2019
- Businesses with a turnover over the VAT threshold of £85,000 for VAT only – From April 2019
- Businesses for all other taxes – From April 2020
So, if you have any dealings with HMRC MTD is likely to affect you.
If you would like to have a chat about this, give us a call
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What I particularly like is that they are up for doing all sorts of support, from basic book-keeping, through to strategic challenge and insight. Trusted partners.
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