Making Tax Digital: It's Coming For YOU!
MAKING TAX *YAWN* DIGITAL
It’s coming for YOU. Yes, YOU.
Right now, it applies to VAT registered businesses with turnover above £85,000 but come April 2022 it will apply to *ALL* VAT registered businesses.
From April 2023 MTD expands to include the SELF-EMPLOYED and LANDLORDS with turnover above £10,000. Do we have your attention now?!
WHAT IS MTD?
Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
easier for taxpayers to get their tax right
Read our more detailed account of Making Tax Digital here.
WHAT DOES THIS MEAN FOR YOU? Here’s what we know so far…
KEEPING DIGITAL RECORDS
The easiest way to make this transition is to use MTD compliant software – examples are QuickBooks, Xero, FreeAgent etc. For a transition period Excel sheets that are compatible to bridging software are allowable too.
VAT registered businesses will be used to filing a quarterly return, but this will be an entirely new concept for the Self-Employed. You will need to make a quarterly submission of your income and expenses followed by an annual submission to amend and reach the correct final figures for the year. Currently there are no plans to make quarterly payments alongside the returns.
THAT’S AGES AWAY, WHY ARE YOU BOTHERING ME ABOUT THIS NOW?
Take a minute to think how quickly 2020 has flown by us. These transition dates will creep up on us fast and we want to make sure our clients are fully prepared for the change.
By considering switching to MTD software now, you give yourself time to fully understand and master the software with no stress before it becomes compulsory.
THE SALES PLUG (if you’ll indulge us…)
MTD may seem like a headache but there are genuine advantages to using software - it can help you keep track of your in-year profits, profit margins and who owes you money.
We are QuickBooks ProAdvisors and can offer you discounted rates on your monthly QuickBooks subscription. We can help you through the switch to digital record keeping.
Equal Accountancy Ltd offers Accountancy and Bookkeeping services in Hemel Hempstead and surrounding areas across Herts, Beds and Bucks. We offer a range of services for Limited Companies, Self-Employed individuals and Landlords including Year End Accounts, Corporation Tax returns, Self-Assessment Tax returns, Payroll services, VAT returns, Bookkeeping and Company Secretarial. Get in touch today for a free, non-obligatory quote for your business needs.