What is Making Tax Digital?
In the Spring Budget of 2015, the government introduced the Making Tax Digital for Business policy that would require all VAT registered businesses with a turnover in excess of £85,000 VAT threshold to keep digital VAT records and submit their VAT returns digitally. The policy aims to create a paperless tax returns system that enables all types of businesses and self-employed people to streamline their tax records and submit accurate tax returns.
What are the timelines for Making Tax Digital?
- April 2022 – All VAT registered businesses must comply with MTD VAT legislation and submit their first MTD VAT return on or after April 2022.
- April 2024 – From April 6th 2024, all self-employed people and landlords with an annual income exceeding £10,000 will be required to follow MTD rules for Income Tax and self-assessment tax returns.
- 2026 – The proposed date for introducing Corporation Tax to the Making Tax Digital model, but not before.
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How can R & A Burns help?
We understand that the Making Tax Digital initiative is a significant change in keeping and submitting tax records from small independent traders to large organisations, but there is no need to worry. At R & A Burns, we prepared our business for MTD and helped our clients across Erdington and Birmingham because of the expertise we possess in our team. We can advise you on the best software to use to become MTD ready and how you can use it to produce quarterly reports to submit to HMRC. If you own a business in Erdington or Birmingham that needs support in becoming MTD compliant, call our friendly and professional team today.
